It’s Raining Tokens! (And Not in a Good Way)

TL;DR

• Aptos, Avalanche, and Sandbox all have token unlocks this month, which means increased/diluted supplies and potential sell pressure (be careful out there folks).

Full Story

This month a bunch of crypto tokens are unlocking (aka: being released into circulation). 

Which may seem peculiar because they aren't new coins.

They’re coins that were just locked from the public. 

For instance: 

On Wednesday, SAND will release 9.19% of their overall supply into circulation, accounting for over $96M worth of The Sandbox’s gaming token. 

(With Aptos and Avalanche running unlocks later this month).

And, you may ask “why did they not release all of the tokens at once?”

Well, similar to your weekly allowance as a kid, if you’re given $100 to cover the next month — you might spend it all at once.

But if you’re given $25 a week for 4 weeks, it seems to last a lot longer even though the parameters are the same. 

Same goes for crypto projects: 

Teams meticulously plan the launch and release of tokens into circulations to hopefully ensure a token’s price stability and long term health.

But the one thing they can't plan for is the price of their token after an unlock. Tokens being released en mass means that the overall supply rises, and often results in a big push to sell. 

Which means, over the next month, these tokens may have to battle some pretty heavy sell pressure.

And we sure will be watching to see how it all shakes out.