Crypto Market Anticipates $875 Million Token Unlock in June

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As a seasoned crypto investor with several years of experience under my belt, I’ve witnessed the euphoria and the pain that comes with sudden token releases. The upcoming unlocks of nearly $875 million worth of tokens from various projects, including Arbitrum, Aptos, Starknet, and Sui, have me on edge.

In June, approximately $875 million in cryptocurrencies could be released into the markets as the waiting periods for over 30 blockchain projects conclude. This process, called crypto vesting, is designed to mitigate the risk of sudden token price declines due to large-scale sell-offs from project teams or early investors.

In June, several notable projects are scheduled to distribute their tokens, including Aptos (APT), Arbitrum (ARB), Starknet (STRK), and Sui (SUI). For example, Arbitrum, an Ethereum layer-2 scaling solution, plans to make available 92.65 million ARB tokens worth approximately $105.6 million on June 16.

As a crypto investor, I’ve noticed that TokenUnlocks reported some significant unlocks in June, surpassing the ten million dollar mark. The list includes tokens like 1INCH, DYDX, SUI, ENA, APT, IMX, STRK, ARB, APE, PIXEL, ID, ALT, and YGG. The total unlock value for these transactions amounts to approximately 739 million US dollars.— Wu Blockchain (@WuBlockchain) May 31, 2024

Approximately half of the $105.6 million in tokens – around $64 million – will go towards funding the project team and their advisors. The remaining $41.6 million will then be distributed among the investors.

In June, Aptos is set to distribute approximately 11.1 million APT tokens, valued at around $102.6 million. The allocation includes the foundation, community, key contributors, and investors. On the same month, Starknet intends to distribute about 64 million STRK tokens, equivalent to roughly $78 million. The primary recipients are expected to be early contributors and investors.

Furthermore, Optimism will make available 31.34 million OP tokens, equivalent to around $78 million, in a manner akin to their May release. Simultaneously, Sui is planning to free up approximately $132 million worth of tokens – 65 million tokens – for its Series A and Series B investors, early supporters, and community reserves, scheduled for unlocking on June 1.

After a substantial amount of tokens have been released, these unlocks may signal potential market consequences as the tokens become accessible for trading.

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2024-05-31 17:25