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The cryptocurrency market is preparing for a major event such as Optimism (OP), Aptos (APT), and Taiko (TAIKO) is preparing a token opening with a combined value of $169.66 million. According to data from TokenUnlocksApp, multi-million dollar cryptocurrencies will be flooded in a diversified environment this week, which may increase the existing selling pressure. Of these cryptocurrencies, Aptos (APT) is dominating token openings, with approximately $100 million worth of APT to be opened in the next seven days.
Defining Token Unlocks
Token unlocking refers to the release of a predetermined number of tokens that were previously locked or awarded during the launch of a cryptocurrency. When these tokens are available, they can be traded in the market, which often leads to increased liquidity. However, a potential downside is that a sudden increase in supply can lead to price volatility as recipients of unlocked tokens may decide to sell, causing downward pressure on prices. As such, new buyers are used as exit funds from early investors, team members, or project developers who are given these open tokens.
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In accordance with Data from TokenUnlocksAppThis week’s crypto market activity will see a significant release of tokens across three major projects: Optimism (OP), Aptos (APT), and Taiko (TAIKO). This upcoming launch is particularly noteworthy because it follows the trend of a fall launch, where a large number of tokens are released at the same time. Interestingly, this launch comes just a week after SUI, another prominent blockchain project, unlocked 64.19 million tokens estimated at $106 million.
Among these three projects, Aptos stands out with the most important opening. A total of 11.3 million APT tokens, collectively worth approximately $99.75 million at the current APT price, are set to be issued. The second most notable opening comes from Optimism, which will issue 12.47 million OP tokens worth approximately $21 million. Taiko, a focused project zk-Rollup technology of Ethereum scaling, will also unlock 12 million tokens with a total value of approximately $20.28 million.
What’s Next? Should You Buy or Sell?
Cliff token opening has more profound effects on the value of cryptocurrencies than linear opening. Of the three ecosystems, the opening of Taiko seems to be the most important, as a large part of its circular delivery (15.62%) will be opened in one event, which can have a significant impact on its price action. In comparison, Aptos and Optimism will see smaller portions of their total circulating supply open. Aptos is set to open 2.3% of its circulating supply, while Optimism will release 1% of its circulating supply.
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However, monitoring the opening is important for investors throughout the week. This is especially true for retail investors, as they cannot bear the liquidity risk as these tokens are open. They can be used as an exit currency when open token holders decide to sell or reduce their exposure.
The featured image was created with Dall.E, a chart from Tradingview.com