Unlocking tokens means releasing tokens that were previously held back, usually as part of investment rounds or other funding programs. It's like opening a locked door to access these tokens.
Usually, the team behind a project carefully plans how and when these tokens will be unlocked to avoid causing a sudden drop in token prices due to a flood of sellers. However, certain factors, like low trading volume or early investors selling their tokens as soon as they're unlocked, can still affect the token's value negatively.
The editors at BeInCrypto have highlighted five important token unlocks to keep an eye on next week:
1. CyberConnect (CYBER)
- Unlock date: February 14
- Number of tokens unlocked: 2,360,000 CYBER
- Current circulating supply: 14,821,350 CYBER
- CyberConnect is a decentralized social graph protocol on the BNB Smart Chain. It helps users and projects connect across platforms. CYBER tokens are used for various activities within the protocol. The tokens being unlocked next week are for participants in the public round and the project treasury.
2. The Sandbox (SAND)
- Unlock date: February 14
- Number of tokens unlocked: 205,590,000 SAND
- Current circulating supply: 2,237,731,926 SAND
- The Sandbox is a popular metaverse on Ethereum where users can create virtual worlds, real estate, and more. SAND tokens are essential for interacting within the ecosystem. The upcoming unlock represents a significant portion of the circulating supply, which could lead to increased volatility.
3. Flow (FLOW)
- Unlock date: February 16
- Number of tokens unlocked: 2,600,000 FLOW
- Current circulating supply: 1,487,858,625 FLOW
- Flow is a blockchain platform for NFTs and gaming, developed by Dapper Labs. It's endorsed by major sports organizations like the NBA. FLOW tokens have various uses within the ecosystem. The tokens being unlocked are for Dapper Labs.
4. ApeCoin (APE)
- Unlock date: February 17
- Number of tokens unlocked: 15,600,000 APE
- Current circulating supply: 596,638,257 APE
- ApeCoin is the native token of the Ape ecosystem, which includes the Bored Ape Yacht Club NFT collection. APE tokens often see a drop in value upon unlocking, but recent interest in NFTs might mitigate this.
5. Manta (MANTA)
- Unlock date: February 18
- Number of tokens unlocked: 6,670,000 MANTA
- Current circulating supply: 251,000,000 MANTA
- Manta Network is a blockchain for zero-knowledge applications. It consists of Manta Pacific and Manta Atlantic. The unlocked tokens are for participants in the public sales round.
Keeping an eye on these unlocks can provide insights into the market dynamics of these projects and their tokens.