Unlock represents the process of releasing tokens that were previously locked according to the conditions of investment rounds or other funding programs.
Typically, the project team carefully studies the tokenomics to avoid creating excessive selling pressure at different #unlock stages and thereby maintain the token's value. However, certain factors such as limited liquidity or early investors immediately selling their profits after token unlock can have a significant impact on the asset's prices.
4 Unlocks to Watch This Week
Avalanche (AVAX)
Unlock Date: September 21
Number of Unlocked Tokens: 9,540,000 AVAX
Current Circulating Supply: 353,940,000 AVAX
Avalanche is an open-source platform that enables the launch of decentralized applications and the deployment of public and private blockchains within one scalable ecosystem. The #avax token is used for fee payments and settlement on various Avalanche subnets. Additionally, AVAX can be staked for a yearly reward rate of 11%. This week, over 9 million AVAX tokens will be unlocked and distributed among strategic partners, the Avalanche fund, the project team, and airdrop participants.
Space ID (ID)
Unlock Date: September 22
Number of Unlocked Tokens: 18,490,000 ID
Current Circulating Supply: 286,000,000 ID
Space #id is an innovative platform that provides a universal decentralized identification protocol. This protocol connects people, assets, and dApps across different blockchains, allowing users to have a single domain name to represent their identity in various applications and networks. On September 22, the project plans to unlock over 15 million tokens, which will be distributed between the Space ID fund and airdrop participants.
Covalent (CQT)
Unlock Date: September 22
Number of Unlocked Tokens: 21,780,000 CQT
Current Circulating Supply: 607,920,000 CQT
#cqt is the native currency used in the Covalent Network. The project gathers information from various sources, including nodes and blockchains, and provides users with personalized data about their wallets, including the current and past performance of investments in different types of digital assets. When 25% of the total available tokens are unfrozen on September 22, these tokens will be utilized to reward validators and develop the ecosystem. The remaining tokens will be sent to the project's reserve.
Coin98 (C98)
Unlock Date: September 23
Number of Unlocked Tokens: 18,880,000 C98
Current Circulating Supply: 572,780,000 C98
Coin98 is a universal DeFi platform aiming to bridge traditional finance and decentralized services across different blockchains. To achieve this goal, Coin98 offers various tools such as Coin98 Wallet, #coin98 Exchange, and the Space Gate cross-chain bridge. The platform's utility token, C98, is used for fee payments, governance, and providing special privileges to holders. After the unlock on September 23, the tokens will be distributed among the Coin98 community, team, advisors, and the project's reserve fund.
It is important to remember that unlocking tokens increases the available supply. However, the demand for these tokens does not always increase accordingly. As a result, this can negatively affect the token's price in general cases.
