Data provided by DropsTab shows that last week’s token unlocks involve five projects which are Dao Maker (DAO), STEPN (GMT), Internet Computer (ICP), BitMEX (BMEX), Aptos (APT), and The Sandbox (SAND). The introduction of these tokens could potentially exert significant sell pressure on the market. Notably, previous instances of token unlocking have led to substantial price decreases, reflecting the bearish sentiment that has already affected all five assets.
What Are Token Lockups?
A token lockup, also known as a vesting period, is simply a period during which tokens cannot be sold or traded. This delay may last several years in some circumstances, depending on the team’s method of operation. As a result, the number of crypto tokens released and their influx into cryptocurrency exchanges frequently increase selling pressure on the assets.
List Of Incoming Token Unlocks
One of these tokens is the DAO Maker Token. It serves as the ecosystem’s governance token and operates on the Ethereum network. The token unlock of 20.82 million DAO tokens was set for August 9th, which accounts for 7.41% of the total supply.
The GMT native token works on the “Social-Fi and Game-Fi” WEB 3 lifestyle app STEPN. The 87.92 million GMT tokens, or 1.47% of the entire supply, were set for unlocking on August 9th.
The layer-1 blockchain Internet Computer’s native utility coin, ICP, works to support network governance and reward users. On August 11th, 3.31 million ICP, or more than 0.7% of the supply, was unlocked.
BMEX is another utility token working on BitMEX, a cryptocurrency exchange. On August 11th, more than 18.5 million BMEX, or 4.12% of the total supply, were unlocked.
Another token unlock for 4.54 million APT, or roughly 0.45% of the total supply, was set for August 12th. APT is the native token of the layer one blockchain Aptos, which employs the Proof-of-Stake (PoS) consensus process.
On August 14th, there was another token unlock for SAND, an Ethereum-based utility token used throughout The Sandbox ecosystem. 308.46 million SAND, or 10.28% of the total supply, were unlocked. In total, last week/yesterday saw the unlocking of tokens valued at over $212 million together.
Among the five tokens, APT had the most significant loss, witnessing a decrease of over 8% in value over the past month. During the same time period, DAO’s value dropped almost 5%, while SAND’s value dropped only slightly more than 4%. Both GMT and BMEX prices went down in the last month by 3.7% and 2.4%, respectively. ICP, on the other hand, stood out as an outlier, showing a small drop of only 1% and becoming the group’s highest gainer.
Conclusion
The unlocking of these five tokens provides a window into the dynamic cryptocurrency ecosystem. By understanding the wide variety of tokens, examining market movements, and assessing investment prospects, stakeholders can make informed decisions and minimize risks.
