August – The Month of Token Unlock
By Kapil Rajyaguru
Around 30 projects’ token unlocks are scheduled in August, adding a potential selling pressure of around $495 million.
During token unlocks, there is an introduction of fresh supply. However, the demand might not necessarily go up. Hence, in general cases, there is a negative impact on price
So if you are thinking of investing in cryptocurrency market then be cautious because there are lot of tokens that are going to get unlocked in August that might find their way to exchanges for selling.
First on our list of token unlock is Sandbox’s SAND Token.
Accroding to data compiled from TokenUnlocks, On August 14, the Sandbox project will release 332.55 million SAND worth $142.45 million into circulation. This token unlock consists of 17.19% of the circulating supply.
The Sandbox wants to allocate the upcoming unlocking for the team, advisors, company reserves, strategic sales and for seed sales.
A community member called the upcoming SAND token unlock “absolutely insane.”
Next token on our radar is Avalanche.
On August 26, Avalanche will unlock an additional 2.76% of tokens worth $124.33 million. The company will release 9.54 million tokens for the following beneficiaries:
Additionally, other projects will also release millions into circulating supply.
On August 30, Optimism will unlock $40 million worth of tokens.
On August 12, Aptos (APT) will unlock $32 million worth of tokens.
On August 17, ApeCoin will unlock $29 million worth of tokens.
And dYdX’s $13.30 million unlock is due on Aug. 1. The unlock consists of 3.81% of the circulating supply. However, there is not much impact on the price of the token.
And in conclusion I would like to add that the price of investment assets depends on supply and demand. If the proportion of supply increases and demand remains the same or decreases, the price plummets. In contrast, the price shoots up if demand increases and supply remains the same or decreases.
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