Token unlocking can be shaken by the market and the price may be pumped or dumped depending on the supply and demand. Large unlocks often lead to selling as early investors withdraw cash, while small things may almost not affect. Some tokens can see a short pump before drops, and other tokens can benefit from powerful stories such as Defi or Gaming. The unlocking schedule can help the trader expect the market movement and effectively manage the risk.
Large token locks of the year occur
transposition – (Email protection) Centralized exchangeCryptocurrencyTrading appCryptocurrency investment The token lock release schedule was integrated into the calculation and introduced a major update for market cap methodologies. This move aims to increase transparency and make a decision based on more information.
New way to track market caps
In short, from February 14th with a new update, Binance calculates its market cap by including unlocked tokens in the circulation supply. If the unlocked data is not available, the token is not calculated. The user can check the discipline of the token lock of each project in the Binance website and app project outline section.
If the unlocked data cannot be used, Binance excludes tokens from market cap and circulation supply value. This prevents artificially expanded evaluation and allows users to see only accessible token data openly.
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Receive a large unlock
Next week, the market will see a newly unlocked token flood, and more than $ 240 million is being distributed. Fasttoken (FTN), Quantixai (QAI) and APECHAIN (APE) will be unlocked as a total of $ 113 million. Melania, the Politfi Memecoin, will experience the maximum unlocked release of 40.6%of the supply.
Binance aims to provide greater transparency by introducing this update and to reduce the sudden market impact by exploring the risk of unlocking tokens.
Why is this important?
Token lock can be shaken and goes up quickly. When a large token mass is released, you can make a sudden market swing. Smart traders are closely watched with these events, but they also offer risks. Watching the unlocking schedule will help you understand how the long -term value of the project and the price of the future can move.
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