Impact of Crypto Vesting Periods on Token Markets

user avatar

by Giorgi Kostiuk

2 years ago

Made with AI


In June, a staggering amount of around $875 million worth of locked cryptocurrencies is poised to enter the markets as the vesting periods for over 30 blockchain projects approach their culmination. The practice of crypto vesting is implemented to prevent abrupt flooding of tokens by project team members or early investors, a phenomenon that can exert significant downward pressure on token values.

Among the prominent projects releasing their tokens in June include Aptos (APT), Arbitrum (ARB), Starknet (STRK), and Sui (SUI). Notably, the Ethereum layer-2 platform Arbitrum plans to distribute 92.65 million ARB tokens valued at $105.6 million on June 16.

A substantial portion of the unlocked tokens, amounting to nearly $64 million, will be allocated to the project team and advisers, while the remaining $41.6 million will be made available to investors. Aptos is expected to unlock 11.1 million APT tokens equivalent to $102.6 million in June, with distributions designated for its foundation, community, core contributors, and investors. Similarly, Starknet will release 64 million STRK tokens valued at $78 million on June 15, primarily targeting early contributors and investors.

Additionally, Optimism is set to unlock 31.34 million OP tokens, valued at around $78 million, following a similar release in May. Sui also plans to unlock 65 million tokens worth $66 million on June 1 for its Series A and Series B investors, early contributors, and community reserve.

These unlocking events are occurring after a period of notable token distributions, suggesting potential market fluctuations as these tokens become tradable.

Tier I

Sector: #18291

Sealed Hiding Place Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, hiding places will be stored in your inventory and can be opened with Keys.

Other news

Andreessen Horowitz Expands Crypto Investment Scope with A16z Frontier

Andreessen Horowitz has rebranded its crypto investment fund to A16z Frontier, allowing for a broader investment scope in emerging technologies.

user avatarArif Mukhtar

Robinhood Secures DFSA Authorization and Plans Dubai Expansion

Robinhood has announced its DFSA authorization and plans to establish a headquarters in the Dubai International Financial Centre, with a rollout in the Middle East set for 2027.

user avatarMaria Gutierrez

Circle Updates Institutional USDC Service Details

Circle provides an update on its service for connecting institutional USDC flows, highlighting the complexities of minting and liquidity management.

user avatarDavid Robinson

Grayscale's Research Note Explores Crypto and AI Integration

Grayscale's October 23 research note discusses the intersection of cryptocurrency and AI, highlighting various business models and their implications.

user avatarAndrew Smith

Lido Introduces New Community Staking Module for Ethereum Validators

Lido has launched a new Community Staking Module on October 23, allowing Ethereum validators to hold larger effective balances.

user avatarJacob Williams

Understanding Saffron's Vault System

Saffron's current product structure separates upfront payments from uncertain trading fees generated by Uniswap liquidity positions.

user avatarSon Min-ho

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.