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Token unlock

A scheduled release of previously locked tokens to team, investors or the treasury, adding tradable supply on a known date.

Unlock schedules are published in advance, so the date is not a surprise. The market's handling of it often is: price frequently weakens into a large unlock and can rally afterwards once the overhang is known.

Not every unlocked token is sold. Early investors with a low cost basis are the most likely sellers; team tokens may be held or hedged. But unlocked supply can be sold, and that optionality alone affects price.

Example: a 6% of circulating supply unlock at a $400m cap is $24m of potential sell pressure against maybe $8m of daily volume, three days of volume arriving at once. Check unlock calendars before holding through one.

Related: vesting-cliff, circulating-supply, fully-diluted-valuation, tokenomics

Educational only, not advice. Spotted an error? Post in Site Feedback.