Question 1

What are token unlocks?

Accepted Answer

Token unlocks are events where previously locked tokens become available for circulation according to a vesting schedule. Tokens from various categories such as team, investors, and community are released sequentially at predetermined times.

Question 2

How do token unlocks affect price?

Accepted Answer

Large unlocks can create selling pressure in the market, potentially causing short-term price declines. Unlocks of team or early investor allocations are particularly noteworthy as they are more likely to lead to profit-taking sales.

Question 3

How can I use unlock schedules for investing?

Accepted Answer

Tokens with large upcoming unlocks may face increased selling pressure before the unlock date, which can help you time your entry. Additionally, when the unlock volume is a significant portion of daily trading volume, price volatility may increase, making it useful for risk management.

Token Unlocks

Frequently Asked Questions

Related