Why Must Token Unlocks Be Noticed?
Are you unfamiliar with the term 'unlock' in the cryptocurrency market? If you are an investor intending to delve deeper into the market, the impact of unlocking on token prices is an event you must pay close attention to.
What is Token Unlocking? When each project issues its native tokens, they are usually allocated proportionally to developers, early investors, etc. This is the token distribution model. To avoid a massive sell-off pressure on tokens when the project launches, many projects set a 'lock-up period' during which the tokens held by relevant parties are locked for a certain time, preventing immediate trading. 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 a large number of tokens unlocking may exert pressure on the token price for investors. For instance, at the end of last year (2023), $DYDX unlocked tokens worth approximately $485 Million, which caused its price to plummet nearly 5% in a single day, and the decline continued for several days. However, there are also cases where prices rose instead of falling after unlocking, so whether it rises or falls still requires investors to conduct their own research.
After understanding the potential impacts of unlocking, we inevitably introduce a useful tool - 'Token Unlocks'. This is a practical data provider website that shows the schedules of various tokens about to be unlocked, as well as their circulating volume and unlocking amounts.
Now, let's take a look at which tokens are set to unlock this week!
Arbitrum ($ARB)
Total Market Cap: $4.172 Billion
Unlock Time: December 16th, 21:00
Unlocked Token Amount: 92.65 Million, valued at approximately $94.41 Million, accounting for 2.26% of the circulating supply
ApeCoin ($APE)
Total Market Cap: $1.175 Billion
Unlock Time: December 17th, 20:30
Unlocked Token Amount: 15.6 Million, valued at approximately $25.12 Million, accounting for 2.16% of the circulating supply
QuantixAI ($QAI)
Total Market Cap: $432 Million
Unlock Time: December 18th, 08:00
Unlocked Token Amount: 232.3 Thousand, valued at approximately $22.31 Million, accounting for 5.16% of the circulating supply
Cardano ($ADA)
Total Market Cap: $38.725 Billion
Unlock Time: December 18th, 08:00
Unlocked Token Amount: 18.53 Million, valued at approximately $20.27 Million, accounting for 0.05% of the circulating supply
[Disclaimer] The market carries risks, and investments should be made cautiously. Analyst opinions are for reference only, and users should consider a variety of indicators to determine whether to invest, and consider whether any opinions, viewpoints, or conclusions in this article align with their specific circumstances. Investing based on this is at your own risk.
This article is authorized for reprint from: Crypto City
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