- Aptos, Cyber, The Sandbox, and ApeCoin have voluminous token unlocks scheduled for next week.
- APT, CYBER, SAND, and APE worth millions of dollars are set to flood markets in a cliff unlock.
- Increased token supply could create massive sell pressure.
February has major token unlocks lined up, with millions of dollars worth of tokens due to flood markets. Investors should expect volatility around the calendar dates of the token unlocks and maintain cognizance that this event is often a bearish catalyst.
Also Read: Sandbox price trades sideways ahead of $88 million Valentine’s token unlock
Brace for these four token unlocks this week
First in line is the Aptos ecosystem, due to release 24.84 million APT tokens worth $229.79 million on Sunday, February 11. Constituting 7.32% of the network’s circulating supply, the tokens will be allocated to the foundation, community, core contributors, and investors, with the last two likely to cash in for a profit.
The CyberConnect network will follow, releasing 2.36 million CYBER tokens worth $16.91 million on Valentine’s Day, February 14. The tokens will make up for 15.93% of the network’s circulating supply.
Metaverse gaming ecosystem, The Sandbox, will be unleashing 209.59 SAND tokens into the markets in a cliff unlock on February 14, worth around $97.19 million at current rates. This will mark the network’s first issue, comprising 9.19% of the circulating supply.
Last, but not the least, the ApeCoin ecosystem will be unlocking 15.6 million APE tokens on February 15. Worth $22.62 million at current rates, these tokens will comprise 2.61% of the network’s circulating supply.
Reasons for these unlocks
Cryptocurrency projects have a defined roadmap from the time they launch. The ecosystem carefully plans how it will release specified proportions of its token supply into circulation on a batch-by-batch basis. The goal of such a structure is to promote the stability of the token while fostering long-term health.
Token allocation varies, depending on how they have been earmarked. The recipients determine whether selling pressure should be expected or not, depending on their assumed selling appetite.
Traders tend to keep an eye out for such events because of their nature to cause price volatility. Proactive traders know how to make a profit by trading around these events. The other lot is often rekt as part of exit liquidity.
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