The Unlocking Wave
Crypto tokens with a combined value exceeding $212 million are on the brink of being unlocked this week. The projects in the spotlight include Dao Maker (DAO), STEPN (GMT), Internet Computer (ICP), BitMEX (BMEX), Aptos (APT), and The Sandbox (SAND). This data has been meticulously compiled by DropsTab. The unlocking of these tokens might induce a notable sell pressure in the market.
Delving into the Details
- DAO Maker Token: This is the governance token for the DAO Maker ecosystem, which operates atop the Ethereum blockchain. A significant unlock of 20.82 million DAO, which is 7.41% of its total supply, is marked for August 9th.
- GMT: This is the native token for the WEB 3 lifestyle app, STEPN, which integrates “Social-Fi and Game-Fi” elements. An unlock of 87.92 million GMT, 1.47% of its total supply, is also slated for August 9th.
- ICP: Serving as the native utility token for the layer-1 blockchain Internet Computer, ICP aids in network governance and rewards its participants. An unlock of 3.31 million ICP, over 0.7% of its total supply, is set for August 11th.
- BMEX: This functional utility token is designed for the crypto exchange, BitMEX. A substantial 18.5 million of BMEX, 4.12% of its total supply, will be unlocked on August 11th.
- APT: As the native token for the layer 1 blockchain Aptos, which employs the Proof-of-Stake (PoS) consensus mechanism, APT is gearing up for an unlock event on August 12th. This will involve the release of 4.54 million APT, around 0.45% of its total supply.
- SAND: An ERC-20 utility token built on the Ethereum blockchain, SAND is used extensively within The Sandbox ecosystem. An unlocking event on August 14th will see the release of 308.46 million SAND, a whopping 10.28% of its total supply.
A Personal Take on the Unlocking Phenomenon
From my point of view, token lockup, often termed as a vesting period, is a crucial interval during which tokens are barred from trading or liquidation. The duration of this period is typically dictated by the team’s strategy and can span several years in some cases. The release of these crypto tokens generally intensifies the selling pressure on the assets. This pressure is a cumulative effect of the volume of unlocked tokens and their influx into cryptocurrency exchanges.
Past unlock events have showcased a trend of declines with the introduction of new tokens into the market. For instance, APT witnessed a drop in its value by over 8% in the past month. DAO and SAND followed suit with declines of nearly 5% and a bit over 4%, respectively. Other tokens, GMT and BMEX, also experienced a dip in their prices by 3.7% and 2.4% in the last month. ICP, however, managed to stand out with a minimal decline of 1%.
In conclusion, while the unlocking of tokens is a regular occurrence in the crypto world, its impact on the market can vary. As I see it, investors should remain vigilant and informed about such events to make well-informed decisions.
