Watch Out for These Massive Token Unlocks in November
The market is getting ready for yet another month of token unlocks. Data suggest that there were substantial unlocks exceeding $10 million in November, featuring tokens such as SUI, IMX, HFT, APT, APE, AVAX, OP, and others.
Nearly $400 million worth of assets will enter circulation following the unlock events.
Token Unlock: November Edition
According to the TokenUnlocks website, SUI is the first token to be unlocked this month on November 3rd. These newly unlocked tokens – 34.62 million SUI worth around $15.9 million – are earmarked for allocation to the Community Access Program.
The next big unlock is for Aptos on November 12th – the layer 1 blockchain developed by former Meta executives – during which 24.8 million APT tokens will be released. The event is notable since core contributors, investors, the community, and the Aptos Foundation are all slated to receive portions of this release.
ApeCoin (APE) is scheduled for 17th November during which 15.60 million APE tokens will be unlocked worth around $121.22 million in current price.
Layer-1 blockchain, Avalanche’s native token, AVAX is also gearing up for a token unlock later on November 24th. 9.54 million AVAX tokens, valued at around $9112.50 million at current price, will be released.
Optimism (OP) is the last token that will be unlocked this month, scheduled for November 30th, during which 24.16 million OP tokens are worth approximately $34.31 million.
Impact on Market
A token lockup, frequently referred to as a vesting period, defines a specific duration during which tokens are not allowed to be traded or converted into cash. The duration of this lockup period is decided by the team’s chosen strategy and can span several years in some cases.
As a result, the introduction of crypto tokens generally intensifies selling pressure on the assets, influenced by both the quantity of unlocked tokens and their entry into cryptocurrency exchanges.
Historically, previous token unlocks have also exhibited increased downward pressure as new tokens enter the market. But with the recovery in the market, a massive drawdown is not anticipated.
The post Watch Out for These Massive Token Unlocks in November appeared first on CryptoPotato.
Filed under: Bitcoin - @ November 4, 2023 11:45 pm