Millions of dollars of selling pressure is coming! This week, these 5 coins will have a large unlock, beware of the risk of big dump.

Market - 2024.07.01 - By Sean
What is token unlocking? Why is it necessary to follow token unlocking? What tokens are going to be unlocked this week?
Contents

01
Why does token unlocking have to be followed?
02
Acala($ACA)
03
Io.net ($IO)
04
Galxe（$GAL）
05
Hashflow ($HFT)
06
Ethena（$ENA）
Why does token unlocking have to be followed?

Are you unfamiliar with the term 'unlock' in the cryptocurrency market? If you are an investor planning to delve into the market, unlocking is an event that you must closely follow for its potential impact on token prices.

What is token unlocking? When the native tokens of each project are issued, they are usually allocated to developers, early investors, etc. in proportion. This is the token distribution model. In order to avoid the enormous selling pressure on tokens at the start of the project, many projects will set a 'lock-up period' to lock the tokens held by relevant individuals for a period of time, preventing immediate trading. Subsequently, at specific time points, some of these tokens will be unlocked, allowing holders to trade freely.

This is a price protection mechanism for the project, but for investors, a large amount of token unlocking may put pressure on the coin price. For example, at the end of last year (2023), $DYDX unlocked tokens worth about $485 million, which immediately caused its price to plummet by nearly 5% in a single day, and the decline continued for several days. However, there are also cases where the price rises instead of falling as expected after the unlocking. Therefore, investors need to conduct their own research to determine whether the price will rise or fall.

After understanding the possible impact of unlocking, it is inevitable to introduce a useful tool - 'Token Unlocks', which is a practical data provider website, where you can see the schedule of various tokens about to unlock, as well as the circulating supply and unlocking amount.

So let's take a look at which tokens are about to be unlocked this week!

Acala($ACA)

Total Market Cap: $72.39 million
Unlock time: 3:00 PM, July 1st.
Unlocked token amount: 27.43 million, worth approximately $1.8 million, accounting for 2.69% of the circulating supply.
Io.net ($IO)

Market Cap: $313.5 million
Unlock time: 21:00 on July 1st
Token unlock amount: 7.5 million, worth approximately 23.55 million US dollars, accounting for 7.89% of the circulating supply
Galxe（$GAL）

Total Market Cap: 2.61 billion dollars
Unlock time: 20:00 on July 5th.
Unlock Token Quantity: 3 million, worth approximately $6.31 million, accounting for 2.6% of the circulating supply.
Hashflow ($HFT)

Market Cap: $88.86 million
Unlock time: 7th July, 8:00 AM
Token unlock amount: 13.62 million, worth about 2.75 million US dollars, accounting for 3.28% of the circulation supply.
Ethena（$ENA）

Market Cap: 8,7847 billion yuan
Unlock time: July 7th, 15:00 PM
Token unlock amount: 14.89 million, worth approximately $7.26 million, accounting for 0.92% of the circulating supply