Token unlock, known as unlock, occurs when previously frozen tokens held as part of investment rounds or other fundraising programs become available for use.

Usually, the team carefully develops tokenomics to avoid situations in which unlocking tokens leads to significant pressure from sellers at various stages, which can affect the price of the token. However, some factors, such as a lack of liquidity or the desire of early investors to lock in profits immediately after unlocking, may negatively affect the quotes of the asset.

The editorial board of BeInCrypto has selected 5 important unlocks that should be monitored next week:

dYdX (DYDX)
Date of separation: February 20
Number of unlocked tokens: 575,340 DYDX
Current outstanding offer: 300 426 828 DYDX
In early 2023, the largest decentralized derivatives trading protocol, dYdX, announced changes to the initial tokenomics of the project. According to the updated information, 30% of the total DYDX offer will be allocated to early investors, another 30% to the team and the community reserve, 28% to reward traders and liquidity providers, and the remaining tokens will be received by future employees. At the moment, about a third of the total DYDX offer is in circulation. The remaining tokens will be unlocked in installments over the next two years.

Avalanche (AVAX)
Date of separation: February 22
Number of unlocked tokens: 9.54 million AVAX
Current outstanding offer: 367,521,374 AVAX
Avalanche is an open source platform for running decentralized applications and creating public and private blockchains within a single scalable ecosystem. The AVAX token is used to pay commissions and settlements in Avalanche subnets. It can also be used for staking with an annual return of 11%. By the end of February, the total AVAX offer will increase by more than 9 million tokens — the unlocked tokens will be distributed among strategic partners, the Avalanche foundation, the project team and airdrop participants.

Space ID (ID)
Date of separation: February 22
Number of unlocked tokens: 18,490,000 ID
Current outstanding offer: 430 506 132 ID
Space ID is a universal decentralized identification protocol that connects people, assets and dApps on various blockchains. The platform allows you to use a single domain name to represent your identity in all individual applications and networks. On February 22, the project will unlock more than 18 million ID tokens, which will be distributed between the Space ID foundation and airdrop participants.

Coin98 (C98)
Date of separation: February 23
Number of unlocked tokens: 18,880,000 C98
Current outstanding offer: 693,740,000 C98
Coin98 is a multifunctional DeFi platform that aims to connect traditional finance with decentralized services on multiple blockchains. To do this, Coin98 uses a wide range of tools, including Coin98 Wallet, Coin98 Exchange and the Space Gate cross-chain bridge.

The service token of the C98 platform is used to pay commissions, manage and grant unique rights to holders. The tokens unlocked on February 23 will be distributed among the community, the Coin98 team and advisors, as well as the treasury of the project.

ImmutableX (IMX)
Date of separation: February 23
Number of unlocked tokens: 34,190,000 IMX
Current outstanding offer: 1,370,000,000 IMX
Immutable X is a second—tier (L2) solution for scaling NFT on the Ethereum blockchain. In September 2021, the project raised $12 per hour