Over $200 Million Worth of Major Tokens to be Unlocked This Week: What You Need to Know
Crypto tokens worth upwards of $212 million are set to unlock this week. According to the latest data, five projects – Dao Maker (DAO), STEPN (GMT), Internet Computer (ICP), BitMEX (BMEX), Aptos (APT), The Sandbox (SAND), according to data compiled by DropsTab.
The token unlocks could potentially create some significant sell pressure.
Token Unlocks: Weekly Edition
The DAO Maker Token is the governance token of the DAO Maker ecosystem built on top of the Ethereum blockchain. The token unlock of 20.82 million DAO, representing 7.41% of the total supply, is scheduled for August 9th.
GMT is the native token of a WEB 3 lifestyle app called STEPN which has “Social-Fi and Game-Fi” elements. The token unlock of 87.92 million GMT, accounting for 1.47% of the total supply, is also set for August 9th.
ICP is the native utility token of layer-1 blockchain Internet Computer and is used to facilitate network governance and reward participants. It’s scheduled for an unlock of 3.31 million ICP, which is over 0.7% of the total supply, on August 11th.
BMEX is a functional utility token designed for use on the crypto exchange, BitMEX. More than 18.5 million of BMEX, representing 4.12% of the total supply, will be unlocked on August 11th.
APT, the native token of a layer 1 blockchain Aptos, that uses the Proof-of-Stake (PoS) consensus mechanism, is scheduled for another unlock event on August 12th involving the release of 4.54 million APT, which is around 0.45% of the total supply.
SAND, the ERC-20 utility token built on the Ethereum blockchain and used throughout The Sandbox ecosystem, is slated to witness an unlocking event on August 14th, during which 308.46 million SAND or 10.28% of the total supply will be released.
Collectively, this week will see the unlock tokens worth over $212 million.
Pressure on Price?
Token lockup, often called a vesting period, is essentially a specific timeframe during which tokens are restricted from being traded or liquidated. The length of this interval is determined by the team’s chosen approach and can extend for multiple years in certain instances.
Hence, the release of crypto tokens usually amplifies selling pressure on the assets, influenced by both the number of unlocked tokens and their influx into cryptocurrency exchanges.
Previous unlocks, too, have demonstrated more declines amidst new tokens entering the market. All five assets have already been experiencing significant bearish pressure.
APT was the biggest loser of the five tokens, seeing its value decline by more than 8% over the past month. DAO also recorded a decline of nearly 5% during the same period, followed by SAND with a little over 4%. Other tokens, such as GMT and BMEX, also noted an underwhelming price performance and were down by 3.7% and 2.4%, respectively in the last month. ICP was the highest gainer among all, with a minor decline of 1%.
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Text source: CryptoPotato
