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What is Token Unlock in Crypto?
token unlock”= refers to the moment when previously untradable tokens become available for sale or transfer. This strategy aims to maintain price stability and avoid massive sales that could result in significant market turmoil.
When a new crypto project is launched, not all tokens are immediately circulated in the market. Some tokens are stored or “locked” for a certain period of time, known as the vesting period. During this period, the tokens cannot be accessed, bought, sold, or traded on the public market.
The main purpose of token locking is to prevent early investors or project team members from offloading their tokens soon after launch, which could lead to a drastic price drop. This step is taken to protect the interests of other investors and ensure the long-term sustainability of the project.
5 Larges Unlock in October
According to information from TokenUnlock, in October 2024, there will be an estimated US$3.915 billion worth of crypto tokens released into the market. These token release events are usually of interest to investors and traders, as the increase in the number of tokens in circulation can potentially result in considerable price fluctuations. This can have a significant impact on their investment and trading strategies
Here are the 5 cryptos that will unlock the most this October.
1. Celestia (TIA)
On October 31, 2024, TIA will carry out a token release of 176.5 million TIA, which represents 83.06% of the total outstanding tokens. This disposal has a value equivalent to US$1.12 billion. The released tokens will be distributed for various purposes, including ecosystem research and development, key contributors, as well as early investors from the seed, series A, and series B stages.
This event marks Celestia’s first token release since the Token Generation Event (TGE) that took place in October 2023. From the looks of the allocation pattern, most of the tokens will go to investors. This could potentially lead to considerable selling pressure around the time of the token release.
2. Sui (SUI)
In this October, SUI released 98 million tokens from lockup, representing 3.66% of the total supply. This unlocked amount was worth approximately $165.4 million. The tokens were distributed among various stakeholders, including early-stage investors (Series A and B), initial contributors, Mysten Labs’ treasury, and a community reserve.
A similar unlock event occurred a month earlier, on September 1, 2024, involving the same number of tokens and distribution pattern. Following that unlock, SUI’s price experienced a decline of 8.8% within 24 hours.
3. Zetachain (ZETA)
On October 18, ZETA will release 443.52 million tokens from its lock period, representing 100.29% of the total tokens in circulation. The value of these released tokens amounted to US$283.32 million. The tokens were distributed for various purposes, including user growth, ecosystem development, liquidity incentives, key contributors, project advisors, and protocol cash.
A similar token release occurred a month earlier, on September 18, 2024, with identical amounts and distribution patterns. Interestingly, the price of ZETA actually increased by 30% in the 24 hours following the token release. This phenomenon is likely related to the upward trend in the prices of several other altcoins, which occurred after the Fed’s announcement of interest rate cuts in the United States.
4. Arbitrum (ARB)
Arbitrum (ARB) released 92.65 million ARB tokens on October 15 from lockdown, which is equivalent to 2.56% of the total tokens in circulation. The value of these released tokens amounted to US$57.27 million. The tokens were distributed to the project’s development team, advisors, and investors.
One month earlier, a similar token release with an identical amount and distribution pattern. After the token release, the price of ARB decreased by 7.5% in the span of two days.
5. Laptop (APT)
On October 11, 2024, Aptos (APT) will unlock 11.31 million APT tokens, equivalent to 2.26% of the total circulation, with a value of US$95.09 million. This unlock was allocated to the Aptos Foundation, the community through regular monthly unlocks, as well as contributors and investors.
The previous token unlock occurred on September 12, 2024, with the same number of tokens and allocation. After the unlock, the APT price decreased by 9% in three days.