Large Token Unlocks in January 2024
Several cryptocurrency projects are set to release new tokens worth at least $10 million into their circulating supply in the coming month. This will result in a total of around $560 million in cryptocurrencies being unlocked in January 2024, according to TokenUnlocks. The tokens will be distributed to various participants, including core contributors, charities, staking rewards, and investors.
Aptos (APT)
Aptos, a layer-one blockchain, will unlock 24.8 million APT tokens worth approximately $235 million. These tokens will be allocated to the Aptos Foundation, community incentives, core contributors, and investors.
Injective (INJ)
Injective’s circulating supply will see an unlock of just over 4% for advisers by mid-late January. This release of 3.7 million coins is valued at $137 million.
Optimism (OP)
Ethereum scaling solution Optimism will distribute 24 million OP tokens among core project contributors and investors. This unlock represents less than 3% of Optimism’s circulating supply and is valued at about $87 million.
Axis Infinity (AXS)
Gaming project Axie Infinity’s native token, AXS, will have 3.4 million coins unlocked for staking rewards. These tokens are worth $31 million and make up 2.5% of the available supply.
Sui (SUI)
The Community Access Program of Sui will receive $28 million worth of SUI coins in early January. This token unlock consists of 34.6 million SUI tokens, approximately 3% of the total market supply.
Ape (APE)
ApeCoin (APE), created by Yuga Labs, plans to distribute $26 million in crypto to the company, founders, treasury, and contributors. Additionally, 15.6 million APE tokens will be allocated for charity purposes.
Space ID (ID)
53 million ID coins of the blockchain name service Space ID will be used for strategic sales, token airdrops, ecosystem funds, marketing budgets, and the Space ID Foundation. This represents 12% of the circulating supply and is valued at $16.6 million.
While it is unclear if these tokens will be sold into the market, the unlocks may create sell pressure on the respective tokens. Most of these projects are built on a proof-of-stake consensus mechanism, which is an alternative to proof-of-work blockchains like Bitcoin.
Hot Take: Potential Impact of Large Token Unlocks
The release of new tokens worth millions of dollars into the crypto market can have significant implications. As these tokens are unlocked for different purposes, there is a possibility that they could induce sell pressure on their respective projects. This influx of supply may lead to price fluctuations and increased volatility in the market. Additionally, the fact that many of these projects are built on proof-of-stake consensus mechanisms highlights the growing popularity of this alternative approach to blockchain technology. It will be interesting to observe how these token unlocks shape the cryptocurrency landscape in the coming months.
By
By
By
By
By