Why is token unlocking important to care about?

Are you unfamiliar with the term “unlocking” the cryptocurrency market? If you are an investor who intends to deeply understand the market, unlocking the possible impact on the price of tokens is an event that you must pay close attention to.                             

What is token unlocking? When each project issues native tokens, they are usually allocated to developers, early investors, etc. in proportion. This is the token distribution model. In order to avoid the tokens encountering huge selling pressure when the project is launched, many projects will set up A "lock-up period" is set to lock the tokens held by relevant persons for a period of time so that they cannot be traded immediately. Then at a specific point in time, these tokens will be partially unlocked, allowing holders to trade freely.                             

This is a price protection mechanism for the project, but for investors, a large number of token unlocks may put pressure on currency prices. For example, at the end of last year (2023), $DYDX unlocked a value of approximately $485 million. The price of the token immediately plummeted by nearly 5% in a single day, and the decline continued for several days. However, there are also cases where the price did not fall as expected after the unlocking was completed, but rose instead. For this reason, investors need to make their own decisions whether to rise or fall. Good research.                     

After understanding the possible impact of unlocking, it is inevitable to introduce a useful tool - "Token Unlocks". This is a practical data providing website. You can see the upcoming unlocking schedule of various tokens, as well as the circulation volume, unlocking quantity.​​

So let’s take a look at which tokens will be unlocked this week!​

Acala（$ACA）

  • Total market value: US$72.39 million

  • Unlocking time: 15:00 pm on July 1st

  • Amount of unlocked tokens: 27.43 million, worth approximately US$1.8 million, accounting for 2.69% of the circulating supply

Io.net（$IO）

  • Total market capitalization: US$313.5 million

  • Unlocking time: 21:00 on the evening of July 1st

  • Amount of unlocked tokens: 7.5 million, worth approximately US$23.55 million, accounting for 7.89% of the circulating supply

Galxe（$GAL）

  • Total market capitalization: US$261 million

  • Unlocking time: 20:00 on the evening of July 5th

  • Amount of unlocked tokens: 3 million, worth approximately US$6.31 million, accounting for 2.6% of the circulating supply

Hashflow（$HFT）

  • Total market value: US$88.86 million

  • Unlock time: 8:00 am on July 7th

  • Amount of unlocked tokens: 13.62 million, worth approximately US$2.75 million, accounting for 3.28% of the circulating supply

Athena ($ENA)

  • Total market value: 8,784.7 billion yuan

  • Unlocking time: 15:00 pm on July 7th

  • Amount of unlocked tokens: 14.89 million, worth approximately US$7.26 million, accounting for 0.92% of the circulating supply

[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions contained in this article are appropriate for their particular circumstances. Invest accordingly and do so at your own risk.