Why must we pay attention to token unlocks?

Are you unfamiliar with the term 'unlock' in the cryptocurrency market? If you are an investor intending to gain a deeper understanding of the market, the potential impact of unlocks on token prices is an event you must closely monitor.

What is token unlocking? When each project issues its native token, it is usually allocated proportionally to developers, early investors, etc. This is the token distribution model. To avoid massive selling pressure when the project launches, many projects set a 'lock-up period', locking the tokens held by relevant parties for a certain period, preventing immediate trading. Subsequently, at specific time points, these tokens will be partially unlocked, allowing holders to trade freely.

This serves as a price protection mechanism for projects, but for investors, a large amount of token unlocks may put pressure on the token price. For example, at the end of last year (2023), $DYDX unlocked tokens worth about $485 million, which caused its price to plummet nearly 5% in a single day, with the decline lasting for several days. However, there are also cases where prices did not drop as expected after unlocking, but rather increased, so whether it rises or falls still requires investors to conduct their own research.

After understanding the potential impact of token unlocks, it is customary to introduce a useful tool - 'Token Unlocks'. This is a practical data providing website that allows you to see the schedules of various tokens that are about to unlock, as well as their circulation and unlock amounts.

Now let's take a look at which tokens are about to unlock this week!

Sui ($SUI)

  • Total Market Capitalization: $9.517 billion

  • Unlock Time: December 1 at 8:00

  • Unlock Token Amount: 64.19 million tokens, valued at approximately $216 million, accounting for 2.26% of circulating supply

Optimism ($OP)

  • Total Market Capitalization: $2.69 billion

  • Unlock Time: November 30 at 8:00

  • Unlock Token Amount: 31.34 million tokens, valued at approximately $68.32 million, accounting for 2.5% of circulating supply

Immutable ($IMX)

  • Total Market Capitalization: $2.872 billion

  • Unlock Time: November 29 at 8:00

  • Unlock Token Amount: 24.52 million tokens, valued at approximately $42.41 million, accounting for 1.47% of circulating supply

1inch ($1INCH)

  • Total Market Capitalization: $492 million

  • Unlock Time: November 30 at 20:00

  • Unlock Token Amount: 98.74 million tokens, valued at approximately $38.73 million, accounting for 7.72% of circulating supply

[Disclaimer] The market has risks, and investment should be cautious. Analyst opinions are for reference only, and users should refer to a wider range of indicators to determine whether to invest, considering whether any opinions, views, or conclusions in this article align with their specific circumstances. Invest at your own risk.

'Total selling pressure reaches $300 million! This week, 'these 4 coins' will have large unlocks, so buyers be cautious.' This article was first published on 'Crypto City'