Token Unlocks and Their Impact on Cryptocurrency Prices
Understanding the impact of token unlocks on cryptocurrency prices is crucial for investors and traders. In this article, we will explore the concept of token unlocks, the types of unlocks, and their impact on prices. Additionally, we will take a look at 10 upcoming cryptocurrency projects with significant token unlocks.
What are Token Unlocks?
Token unlocks refer to the release of previously locked or restricted tokens into the market. These tokens become available for trading, buying, and selling after the end of their vesting period. The vesting period is the duration during which the tokens are restricted.
Cliff Unlocks:
Cliff unlocks refer to the release of tokens held in a locked state on a specific date. A certain percentage of the token's total supply is released at a specific date.
Linear Unlocks:
Linear unlocks refer to the release of tokens at a steady fixed rate over a period of time. For instance, a certain percentage of the total token supply can be released per day, week, or month.
Impact of Token Unlocks on Prices:
Token unlocks increase the supply of the particular cryptocurrency, which can lead to a fall in price if the demand remains the same or does not increase proportionally. This is because the recipients of the tokens may choose to sell them, increasing the supply in the market.
Upcoming Projects with Significant Token Unlocks:
Avalanche (AVAX) - A Smart Contract Blockchain with High Transaction Output Avalanche is a layer one blockchain that serves as a platform for decentralized applications and smart contracts. With a transaction output of up to 6,500 transactions per second, it outperforms Ethereum in terms of scalability. AVAX has a fully diluted market cap of $12.5 billion, and 49.81% of tokens are already unlocked. An additional 1.325% of the total supply will be unlocked on May 28th, 2023.
Blur (BLUR) - An Advanced NFT Marketplace and Aggregator Platform Blur is a non-fungible token (NFT) marketplace and aggregator platform that offers advanced features such as real-time price feeds, portfolio management, and multi-marketplace NFT comparisons. Its native governance token, $BLUR, has a fully diluted market cap of $1.89 billion, with 80% of the total supply still locked. The platform will unlock 195,999,999 BLUR tokens (6.5% of total supply), worth $124 million, on June 14th, 2023.
Tornado Cash (TORN) - A Decentralized Privacy Platform Built on Ethereum Tornado Cash is a decentralized, noncustodial privacy platform created on Ethereum. It enables users to deposit and withdraw ERC-20 tokens and ETH with different addresses, enhancing transaction privacy and anonymity. $TORN has a fully diluted market cap of $80,224,042, with 64% of tokens already unlocked. The protocol will unlock 1.8% of its total supply, which is 175,000 $TORN worth $1.4 million, on May 7th, 2023.
LooksRare (LOOKS) - An NFT Marketplace that Rewards Traders, Collectors, and Creators LooksRare is an NFT marketplace that rewards traders, collectors, and creators with LOOKS and other incentives. $LOOKS has a market cap of $106.1 million, with a fully diluted valuation of $130 million. 81.67% of its total supply is already unlocked. The platform will unlock 37,500,000 $LOOKS (3.8% of total supply), valued at $4.8 million, on June 15th, 2023.
Hedera (HBAR) - A Public Distributed Ledger with Native Tokenization and Consensus Services Hedera is a fully open-source public distributed ledger that utilizes the fast, fair, and secure hashgraph consensus. Its network services include Solidity-based smart contracts, as well as native tokenization and consensus services used to build decentralized applications. $HBAR has a market cap of $1.89 billion, with an FDV of $3.03 billion, and 56.89% of tokens already unlocked. On June 1st, 2023, the protocol will unlock 127,353,491 HBAR, worth $77.3 million (2.5% of total supply).
Optimism ($OP): Unlocking 154.6 million tokens worth $335.5 million on May 31st, 2023 Optimism, a layer-two blockchain built on Ethereum, is set to unlock 154.6 million tokens worth $335.5 million on May 31st, 2023. The project aims to scale the Ethereum ecosystem by using optimistic rollups, enabling trustless recording of transactions on Optimism while ultimately securing them on Ethereum.
The Sandbox ($SAND): Unlocking 332.5 million tokens worth $191.1 million on August 14th, 2023 The Sandbox, a virtual Metaverse built on Ethereum, is set to unlock 332.5 million tokens worth $191.1 million on August 14th, 2023. The project allows players to build, own, and monetize their gaming experience in a decentralized manner.
Arbitrum ($ARB): Unlocking 1.1 billion tokens worth $1.5 billion on March 23rd, 2024 Arbitrum, an Ethereum layer-two scaling solution, is set to unlock 1.1 billion tokens worth $1.5 billion on March 23rd, 2024. The project uses optimistic rollups to improve speed, scalability, and cost-efficiency on the Ethereum network.
Apecoin ($APE): Unlocking 15.6 million tokens worth $62.8 million on May 17th, 2023 Apecoin, an ERC-20 governance and utility token used within the APE Ecosystem, is set to unlock 15.6 million tokens worth $62.8 million on May 17th, 2023. The project aims to empower and incentivize a decentralized community building at the forefront of web3.
BitDAO ($BIT): Unlocking 187.5 million tokens worth $93.4 million on May 15th, 2023 BitDAO, one of the world's largest Decentralized Autonomous Organizations, is set to unlock 187.5 million tokens worth $93.4 million on May 15th, 2023. The project's vision is open finance and a decentralized tokenized economy, governed by BIT token holders.
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