The second week of May 2024 promises to be eventful, with significant token unlocks scheduled between May 6 and May 12, 2024. According to Token Unlocks, a platform offering tokenomics insights, over $132 million worth of tokens are set to unlock during this period.
May 2024, tokens unlock update
During this period, nearly five crypto projects are scheduled to unlock massive tokens, including Aptos (APT), Euler (EUL), Hashflow, and others. However, this isn’t the first time crypto projects have unlocked their tokens. Earlier in April 2024, nearly a billion worth of tokens were unlocked.
According to Token Unlocks, the first token scheduled to be unlocked is MAVIA on May 6, 2024, which will release a substantial 7.66 million MAVIA tokens worth nearly $27 million, equivalent to 25.33% of the circulating supply.
The second token set to unlock is HFT. As per Token Unlocks on May 7, 2024, HFT will unlock a massive 13.63 million tokens valued at over $4 million. This unlocking represents 3.46% of the circulating supply, and to date, HFT’s project has unlocked over 45% of its tokens.
Meanwhile, the last token scheduled for unlocking is APT from the Aptos crypto project. According to data, Aptos will unlock 11.31 million APT tokens worth more than $100 million, equivalent to 2.85% of the circulating supply.
The reason why crypto project unlock their tokens
The primary reason behind this token unlock is to establish a controlled and stable token distribution process while aligning incentives and ensuring the project’s long-term success. Additionally, crypto projects unlock their tokens at regular intervals to gradually distribute tokens, incentivize participation, build community confidence, fund project development, and enforce vesting periods to prevent immediate selling.
However, token unlocking can impact token prices. If a large number of tokens are unlocked and immediately sold, it can lead to a decrease in price due to increased supply. Conversely, if tokens are unlocked gradually and used for project development or held by long-term investors, it can positively influence price stability and growth.
Not a financial advice.