What Are Token Unlocks, and How Do They Impact the Price?
The process of token unlocks allows traders to finally receive their tokens for trading. Token unlocks are often scheduled events designed to prevent the market price from dropping or declining. If you anticipate some of the tokens, we will share the vital information of what to wait for, how to prepare, and what to be cautious about. Our article describes token unlocks as well as their price effects while detailing specific upcoming release dates of MANTA, OP, IMX, APT, and TRUMP tokens.
Key Takeaways
- Token Unlocks Explained: Token unlocks allow previously restricted tokens to be traded. They help prevent market crashes by releasing tokens gradually based on a vesting schedule.
- Market Impact: Unlock events increase supply, potentially decreasing prices if demand stays low. These events often lead to market volatility, with investors anticipating price changes.
- Upcoming Unlocks: MANTA, OP, IMX, APT, and TRUMP will unlock tokens in 2025, which may influence their prices and market behavior.
- Investor Tips: Use NOW Wallet to exchange tokens before unlocking events. Always do your research before making any investment decisions.
What Are Token Unlocks?
Token unlocks, or coin unlocks, serve as the process that lets previously restricted or locked tokens become available for trading and transfers.
What happens when the token unlocks?
In the early development phases, the distribution of cryptocurrency tokens happens mostly to venture capitalists and development team members, along with influencers and early adopters.
How does unlock work?
In the center of the procedure is the vesting schedule, or token release schedule, which determines when and how much of these tokens team members and investors will get access to. The main reason for using vesting schedules is to stop large numbers of tokens from entering the crypto market at once since this behavior causes severe price volatility or even a market crash.
New projects use slow token distributions for two reasons:
- They want to preserve market values.
- They want project personnel to share similar goals with investors regarding future project success.
Impact of Token Unlocks on the Market
How do token unlocks affect price? Token unlocks create several implications that impact the cryptocurrency market behavior.
Firstly, the increased supply. But what is increased token supply? It means that the unlocking process adds more tokens to circulate in the market. The rise in token supply decreases the market value when demand remains low.
Secondly, large token unlocks create price volatility across the market because investors anticipate value adjustments before unlocks happen. Before the anticipated price decrease, investors tend to sell their holdings, which might cause the market value to drop. According to chaincatcher.com, token value changes start 30 days before unlocking events take place, and larger token unlocks cause bigger market fluctuations and price drops.
Thirdly, the market impact results from how crypto unlocked gets distributed among their recipients. For instance: When team members and advisors receive tokens, they might generate selling pressure. It might happen when they freely dispose of the tokens to earn profits for their own purposes.
Anticipated selling pressure from early investors might happen when they release their tokens during the token release. They profit from token appreciation, thus increasing market supply.
Which Major Tokens Have Upcoming Unlocks?
Several primary cryptocurrency tokens will experience unlock events within the nearest future, which may affect supply and consequently shape market value. The upcoming token unlocks will introduce substantial new tokens to the market, thus influencing their price dynamics according to market supply demands.
The token unlock events receive investor attention because supply increases create both short-term market volatility and selling pressure on the tokens.
Manta Network (MANTA)
Manta Network provides users with Web3 development tools to deploy Solidity-based decentralized apps through its modular ecosystem. The platform provides quicker transactions compared to traditional Layer 1 networks and lower gas costs than alternative Layer 2 solutions. The vesting schedule for MANTA tokens helps distribute funds properly and builds a well-developed community that stands behind Manta's sustained development.
- Unlock Date: February 18, 2025
- Tokens to be Unlocked: 13.63M MANTA
- Price, as of writing: $0.414
- Total Value of Unlock: $5.64M
- Percentage of Total Supply to be Unlocked: 3.61%
Optimism (OP)
Ethereum Layer 2 solution Optimism achieves scalability through optimistic rollups as its main operational method. The forthcoming crypto token unlock schedule includes funding for both investors and core contributor teams. Analyze how this upcoming token release will affect its marketplace performance.
- Unlock Date: February 28, 2025
- Tokens to be Unlocked: 32.21M OP
- Price, as of writing: $1.14
- Total Value of Unlock: $36.70M
- Percentage of Total Supply to be Unlocked: 2.39%
Immutable (IMX)
Immutable provides Ethereum users a platform that enhances NFT scalability through zero-knowledge rollups technology. The upcoming token distribution based on schedule will affect both the market liquidity of IMX and its price dynamics.
- Unlock Date: February 21, 2025
- Tokens to be Unlocked: 24.52M IMX
- Price, as of writing: $0.817
- Total Value of Unlock: $20.03M
- Percentage of Total Supply to be Unlocked: 1.40%
Aptos (APT)
The Layer 1 blockchain Aptos focuses on delivering both safety features and high-performance capabilities. The recent token unlock followed its vesting schedule since this event could influence the market direction of APT.
- Unlock Date: March 12, 2025
- Tokens to be Unlocked: 11.31M APT
- Price, as of writing: $5.90
- Total Value of Unlock: $66.75M
- Percentage of Total Supply to be Unlocked: 1.92%
OFFICIAL TRUMP (TRUMP)
$TRUMP token represents leadership through resilience to its users. The public character of President Trump serves as inspiration for the token, which represents an unrestrained and determined approach to dealing with obstacles. People can join a community based on persistent resolve and powerful defiance against challenges. Read more about TRUMP token in our previous article.
- Unlock Date: April 18, 2025
- Tokens to be Unlocked: 40.00M TRUMP
- Price, as of writing: $18.83
- Total Value of Unlock: $753.29M
- Percentage of Total Supply to be Unlocked: 20%
How to Exchange Tokens Before Unlocking?
If you think that upcoming token unlocks present an opportunity, you can exchange your tokens for USDT or other cryptocurrencies before they become available for distribution. You can easily accomplish this through NOW Wallet (NW). But always do your own research and be careful when making any investment decisions!
- Install the app NOW Wallet on your phone or open it on your computer.
- Find the token you have, like MANTA, OP, or APTOS.
- Choose the cryptocurrency to receive: USDT or any other cryptocurrency you prefer.
- Enter the amount that you want to swap.
- Check the details and confirm the transaction. Thoroughly check all transaction information before you finalize the swap. After you approve the transaction, your wallet will show the new cryptocurrency shortly.
You can use NOW Wallet to buy or sell tokens during unlock events, choosing the currency that suits you best. Unlocks are a crucial part of the market and can impact asset prices. Whether to buy in advance, sell after the unlock, or stay out of the trade is entirely up to you. Remember, all investments carry risks, so always do your own research before making any decisions!
