Optimism, Aptos, And Taiko Face $169.66 Million In Token Unlocks, Should You Buy Or Sell?

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As an experienced crypto investor with battle-scars from numerous bull and bear markets, I can’t help but feel a mix of excitement and trepidation as we approach this week’s token unlocks for Optimism (OP), Aptos (APT), and Taiko (TAIKO). With a combined value of $169.66 million set to flood the market, it’s clear that these events will significantly impact the liquidity and price action of these projects.

Get ready for a significant shakeup in the crypto world! Optimism (OP), Aptos (APT), and Taiko (TAIKO) are all readying for token releases totaling approximately $169.66 million, as per TokenUnlocksApp data. This week could see vast amounts of cryptocurrencies being released into different ecosystems, potentially intensifying the current selling trend. Among these digital currencies, Aptos (APT) holds the largest unlock with around $100 million worth of APT set to be freed in the coming seven days.

Explaining The Token Unlocks

Token releases signify the distribution of a pre-determined quantity of tokens that were initially locked at the time of the cryptocurrency’s launch. Upon their release, these tokens can be exchanged in the market, boosting liquidity. However, a possible drawback is that an abrupt increase in supply could cause price fluctuations as token recipients may choose to sell, putting pressure on prices and acting as exit liquidity for initial investors, team members, or project creators who received these unlocked tokens. Consequently, new market entrants serve as the selling pool for early holders.

Based on TokenUnlocksApp’s information, we anticipate a substantial distribution of tokens from three key crypto projects this week: Optimism (OP), Aptos (APT), and Taiko (TAIKO). The upcoming releases are significant because they employ a cliff unlock system, which means a massive amount of tokens will be released all at once. Remarkably, these token releases follow closely on the heels of SUI, another notable blockchain project, which recently distributed 64.19 million tokens worth around $106 million.

Out of the three projects under consideration, Aptos has the largest upcoming release. A staggering 11.3 million APT tokens, currently valued at approximately $99.75 million, are scheduled to be distributed. Following closely behind is Optimism, which will free up around 12.47 million OP tokens worth approximately $21 million. Lastly, Taiko, a project centered around Ethereum scaling using zk-Rollup technology, plans to release 12 million tokens, estimated to be worth $20.28 million in total.

What Next? Should You Buy Or Sell?

Unlocks from Cliff tokens tend to have a greater impact on cryptocurrency prices compared to linear unlocks. Among the three ecosystems, it appears that Taiko’s unlock is crucial because a significant portion (15.62%) of its total supply will be released in one event, potentially causing significant fluctuations in its price movement. On the other hand, Aptos and Optimism will see smaller portions of their respective supplies unlocked – 2.3% for Aptos and 1% for Optimism.

Regardless, keeping an eye on the token unlocks is essential for investors throughout the rest of the week, particularly for retail investors. This is because they may face the risk of liquidity issues as these tokens are released. These tokens could potentially be utilized as exit liquidity once the owners of the unlocked tokens decide to sell or reduce their holdings.

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2024-10-08 00:40