Massive Token Unlocks Coming Soon
By the end of this month, a significant amount of previously locked crypto tokens will be released into the market, potentially creating sell pressure and impacting token supplies. One of the first token unlocks is scheduled for Super Bowl Sunday, where Aptos will release 7.32% of its total token supply, equivalent to approximately $224.82 million based on the current price.
The largest token unlock of the month will occur on Valentine’s Day when The Sandbox’s native token, SAND, will be issued for the first time. This release is worth over $96 million and represents 9.19% of SAND’s entire supply.
Why Are These Tokens Being Released?
Crypto tokens follow carefully planned road maps that outline the gradual release of token supplies into circulation. These releases are designed to ensure stability and long-term health for the tokens. Tokens can be allocated for various purposes such as investor distribution, team members, or ecosystem rewards.
Crypto traders pay close attention to token unlocks as they can significantly increase token supplies and create sell pressure that affects prices. In the last three weeks of February, several more token unlocks worth tens of millions of dollars are scheduled.
Upcoming Token Unlocks
On February 16, ApeCoin will release 2.6% of its total token supply, equivalent to around $21.84 million worth of APE tokens. Towards the end of the month, Avalanche’s native token, AVAX, worth $363.5 million, will be released onto the market. Finally, on February 28, Optimism’s native token, OP, will increase its circulation by 2.52%, representing $82.87 million.
Hot Take: Brace Yourself for Token Flood
The crypto market is about to experience a flood of unlocked tokens, potentially impacting token supplies and creating sell pressure. These scheduled token unlocks can have significant effects on prices, making it crucial for traders to stay informed about upcoming releases. As millions of dollars’ worth of tokens are set to enter the market, it’s essential to closely monitor their impact on the overall crypto landscape.
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