- Nearly 25 million of locked-up APT tokens will be released Friday including to early investors, TokenUnlocks data shows.Prices historically decline around such events as the supply increase outpaces investor demand for the asset, according to research.
Aptos’s indigenous cryptocurrency, APT, didn’t keep pace with the crypto market’s growth before a forthcoming supply event worth nearly $300 million. This event is expected to boost the amount of available tokens in circulation.
Over the past week, APT dropped by over 16%, making it the second-worst performer among the 20 cryptocurrencies in the CoinDesk index. Only Uniswap (UNI), which lost ground due to regulatory actions in the US, performed worse. Meanwhile, Bitcoin (BTC) and Ethereum (ETH) both increased by around 3% and 5%, respectively.
Before the scheduled release of approximately 24.84 million APT tokens on April 12, which had been previously locked up, there was a challenging week according to TokenUnlocks data. Following the release, it may take around 1-2 days before assets can be moved.
Approximately $141 million in tokens is allocated for distribution: $100 million to investors, $38 million amongst community members, and $16 million set aside for an ecosystem development foundation.
In simpler terms, token unlocks occur when large quantities of cryptocurrency are released from vesting, which is a method used to keep early investors and team members from suddenly selling off their tokens in huge amounts. Studies conducted by crypto analysis firm The Tie have shown that these events often lead to price drops due to the increased supply exceeding the market’s demand for the asset.
Approximately 6% of currently available APT tokens will be distributed, yet this amount is almost twice the average daily trading volume, according to data from CoinGecko.
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2024-04-11 23:32