Why should token unlocking be monitored?

Are you unfamiliar with the term 'unlock' in the cryptocurrency market? If you are an investor looking to delve deeper into the market, the impact of unlocking on token prices is an event you must closely monitor.

What is token unlocking? When each project issues its native token, it is typically allocated to developers, early investors, etc., according to a certain ratio. This is the token distribution model. To avoid significant selling pressure when the project starts, many projects will set a 'lock-up period,' during which the tokens held by relevant parties are locked for a period of time and cannot be traded immediately. Subsequently, at specific times, these tokens will be partially unlocked, allowing holders to trade freely.

This serves as a price protection mechanism for the project, but for investors, a large amount of token unlocking may exert pressure on token prices. For example, at the end of last year (2023), $DYDX unlocked tokens worth approximately 485 million USD, which led to a nearly 5% drop in price in one day, and the decline continued for several days. However, there are also cases where prices rose instead of falling after unlocking ended, so whether they go up or down still requires investors to do their own research.

After understanding the potential impact of unlocking, it is necessary to introduce a useful tool - 'Tokenomist (formerly Token Unlocks),' a practical data providing website where you can see the schedules of various tokens about to unlock, along with their circulation and unlocking amounts.

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

  1. Kaspa ($KAS): January 6, 08:00, approximately 182 million tokens will be unlocked, valued at approximately 22.7 million USD, ratio 0.72%.

  2. Delysium ($AGI): January 6, 08:00, approximately 33.59 million tokens will be unlocked, valued at approximately 5 million USD, ratio 2.45%.

  3. Eigenlayer ($EIGEN): January 8, 03:00, approximately 1.29 million tokens will be unlocked, valued at approximately 5.2 million USD, ratio 0.61%.

  4. Ethena ($ENA): January 8, 15:00, approximately 12.86 million tokens will be unlocked, valued at approximately 16.2 million USD, ratio 0.42%.

  5. Movement ($MOVE): January 9, 20:00, approximately 50 million tokens will be unlocked, valued at approximately 53 million USD, ratio 2.22%.

  6. Optimism ($OP): January 10, 04:00, approximately 4.47 million tokens will be unlocked, valued at approximately 9.3 million USD, ratio 0.33%.

  7. Aptos ($APT): January 11, 09:59, approximately 11.31 million tokens will be unlocked, valued at approximately 110 million USD, ratio 2.03%.

  8. io.net ($IO): January 11, 20:00, approximately 3.22 million tokens will be unlocked, valued at approximately 11.8 million USD, ratio 2.50%.

  9. Axie Infinity ($AXS): January 12, 21:10, approximately 815,000 tokens will be unlocked, valued at approximately 5.6 million USD, ratio 0.52%.

A total of 9 tokens will unlock this week, amounting to 240 million USD.

[Disclaimer] The market has risks, and investment should be cautious. Analyst views are for reference only. Users should consider a variety of indicators to determine whether to invest and whether any opinions, views, or conclusions in this article align with their specific circumstances. Investing based on this is at your own risk.

The article '2.4 Billion USD Selling Pressure is Coming! These 9 Tokens Will Have Large Unlocks This Week, Beware of Selling Risks' was first published in 'Crypto City'.