TL; DR
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Aptos, Avalanche, and Sandbox all unlocked tokens this month, meaning increased/diluted supply and potential selling pressure (be careful folks).
Full story
A number of crypto tokens will be unlocked (also known as put into circulation) this month.
That may seem strange, because it isn’t new coins.
They are coins that have just been closed to the public.
For example:
On Wednesday, SAND will release 9.19% of their total supply into circulation, amounting to over $96 million worth of gaming token from The Sandbox.
(With Aptos and Avalanche unlocking later this month).
And you might be wondering, “Why didn’t they release all the tokens at once?”
Well, similar to your weekly allowance as a kid, if you were given $100 to cover the next month, you could spend it all in one go.
But if you get $25 a week for four weeks, it seems to take much longer, even though the parameters are the same.
The same applies to crypto projects:
Teams meticulously plan the launch and release of tokens into circulation to hopefully ensure price stability and the long-term health of a token.
But the one thing they can’t plan for is the price of their token after unlocking. Releasing tokens en masse means that the total supply increases, often resulting in a big push to sell.
That means these tokens may face some pretty heavy selling pressure in the coming month.
And we’ll definitely be watching to see how it all turns out.
