The digital asset market is preparing itself for the imminent release of nearly $900 million in vested tokens in the month of February. Leading the way are projects such as Avalanche, Aptos, and The Sandbox.
Crypto vesting is the process of locking down digital assets for a predetermined period before holders can fully access or transfer them from their wallets. This practice aims to prevent early investors from quickly selling their tokens for a profit and abandoning the project, while also encouraging long-term commitment.
According to Token Unlocks, a data provider, approximately $900 million worth of tokens will be released in February. Some of the tokens set to be released include Avalanche (AVAX), Aptos (APT), The Sandbox (SAND), Optimism (OP), and Sui (SUI).
Among these projects, Avalanche will unlock the largest amount of tokens. On February 22nd, the proof-of-stake (PoS) blockchain project is expected to release 9.5 million tokens, which are currently valued at around $320 million. Token Unlocks has noted that these tokens will be allocated to the Avalanche Foundation, the project’s strategic partners, team members, and for an airdrop.
Aptos, a Layer-1 blockchain, will release 24.8 million crypto tokens on February 11th, with a market value of approximately $233 million. Of these tokens, around $180 million will be allocated to core contributors and investors, while another $39 million will be distributed to the community and foundation.
The Sandbox, a metaverse project, will unlock 209 million tokens on February 14th, worth around $90 million. Out of these tokens, over $40 million will be reserved for the company, while the remaining tokens will be distributed to the team and advisers.
On February 29th, Optimism will release 24 million OP tokens, valued at approximately $70 million, to its core contributors and investors. Additionally, Sui will unlock $53 million in tokens for its community access program.
It is important to note that the sudden increase in the circulating supply of a token can have a negative impact on the market prices of cryptocurrencies, according to tokenomics.
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