The crypto market will face strong selling pressure in the first half of April as numerous large projects unlock tokens, with a total value reaching hundreds of millions of USD. Investors need to pay special attention to the potential risks from these events.
Notable unlock events:
01/04 - Sui ($SUI ) unlocks 64.19 million tokens (198.4 million USD)
02/04 - Ethena (ENA) unlocks 40.63 million tokens (15.32 million USD)
07/04 - Jito Labs ($JTO ) unlocks 11.31 million tokens (24.4 million USD)
09/04 - Saga (SAGA) unlocks 133.33 million tokens (43.7 million USD)
09/04 - Movement ($MOVE ) unlocks 50 million tokens (24.7 million USD)
10/04 - Cheelee (#CHEEL ) unlocks 2.67 million tokens (20.8 million USD)
12/04 - Axie Infinity (AXS) unlocks 10.72 million tokens (32.1 million USD)
12/04 - Aptos (#APT ) unlocks 11.31 million tokens (62.3 million USD)
12/04 - Circular Protocol (#CIRX ) unlocks 44.5 billion tokens (146.1 million USD)
15/04 - Starknet (#STRK ) unlocks 127.6 million tokens (20.6 million USD)
Risks from token unlocking:
Increased selling pressure: When a large amount of tokens are unlocked, initial investors or investment funds may take profits, causing downward pressure on the market.
Panic sentiment: If the market does not have enough liquidity to absorb the new supply, token prices may drop sharply, causing retail investors to panic sell.
Declining confidence: Some projects with an excessive amount of unlocked tokens compared to circulating supply (like SAGA unlocking 119.3% of the supply) may lead investors to lose faith in the actual value of the token.
Risk mitigation strategy:
Monitor the token unlocking schedule and assess the impact on token prices before deciding to invest.
Avoid buying before major unlock events to limit the risk of a sharp price drop immediately after the tokens are released to the market.
Consider taking profits before the unlocking date, especially with tokens that have a large issuance.
