Token unlocking is the release of tokens that were previously locked under fundraising conditions. Projects carefully schedule these releases to avoid market pressure and prevent token price drops.
However, factors such as lack of liquidity or profit taking by early investors can have a significant impact on the dynamics of an asset. Here are four key token unlocks to watch for next week.
Aptos (APT)
- Unlock Date: August 12th
- Number of unlocked tokens: 11.31 million APT
- Current circulation 471.14 million APT
Aptos is a layer 1 blockchain that aims to provide a secure and scalable infrastructure for decentralized applications. It is built with a focus on security and performance , and leverages new technologies to enhance the blockchain experience.
Aptos has been one of the most successful blockchain projects in recent years, but has also faced criticism from the cryptocurrency community due to its tokenomics, which is heavily influenced by venture capital. A significant portion of the APT tokens are still locked. On August 12, the project will distribute 11.31 million APT to community members, core contributors, and investors.
Read more: Where to Buy Aptos (APT): 5 Best Platforms for 2024
SANDBOX
- Unlock Date: August 14th
- Number of tokens unlocked: 205.59 million SAND
- Current Circulating Supply: 2.228 Billion SAND
The Sandbox will conduct two token unlocks each year, in February and August. The second unlock in 2024 is scheduled for August 14, 2024. The project will unlock 225.59 million SAND tokens, equivalent to 9% of the circulating supply, and distribute them to the team, advisors, and the company reserve. This unlock is the last one for retail investors.
“While Sandbox’s valuation has fallen 95% since its all-time high in November 2021, retail investors are still seeing a 78-100x ROI. Since the unlock, 96% of the unlocked tokens are now in circulation. Analysts at Token Unlock noted that this final investor unlock could reduce future selling pressure, which could potentially be bullish for Sandbox.”
Read more: Sandbox (SAND) Price Forecast 2024/2025/2030
Starknet (STRK)
- Unlock Date: August 15th
- Number of tokens unlocked: 64 million STARK
- Current circulation: 1.6 billion STARK
Starknet is developing a ZK Rollup Layer-2 solution to scale decentralized applications on Ethereum. After a successful investment round, the team introduced the STRK token, which is essential for decentralizing the network.
“The STRK token was created to enable Starknet-based scaling in a more decentralized way. The token design helps the community run and manage Starknet, and provisioning is a powerful way to achieve this,” said Diego Oliva, CEO of the Starknet Foundation.
On August 15th, the project will unlock 64 million STRK and distribute them to investors and early contributors.
Read more: Learn more about Starkware, Starknet, and StarkX
Arbitrum (ARB)
- Unlock Date: August 16th
- Number of tokens unlocked: 92.6 million ARB
- Current circulation: 333 million ARB
Arbitrum, developed by Offchain Labs, is one of the most popular layer 2 solutions on Ethereum. It launched its mainnet in August 2021 with funding from Lightspeed Venture Partners, Polychain Capital, Ribbit Capital, Redpoint Ventures, Pantera Capital, Alameda Research, entrepreneur Mark Cuban, and cryptocurrency exchange Coinbase.
Next week, Arbitrum will unlock 90 billion ARB, currently worth approximately $53.5 million. The team, advisors, and investors will receive these tokens.
Read more: How to buy Arbitrum (ARB) and everything you need to know
Next week’s Cliff Unlocks include Cyber (CYBER), Render (RNDR), ApCoin (APE), Ethena (ENA), and Oasis Network (ROSE), with a total value of over $230 million. While many consider token unlocks to be bearish, a well-planned schedule can enhance the long-term viability of a project. Unlocking at milestones and development progress can motivate team members, encourage community engagement, and drive ecosystem growth.
