A huge mountain of different cryptocurrencies will be released this month and this could have consequences on the prices of these currencies.
Up to $4 billion worth of tokens will be unlocked in May and it is advisable to prepare for that.
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Why are cryptocurrencies locked first?
Many big names will be giving up portions of their locked tokens in May free. We are talking about coins like sui (SUI), pyth network (PYTH), aevo (AEVO), avalanche (AVAX), arbitrum (ARB), optimism (OP), aptos (APT), immutable (IMX) and starknet (STRK). .
These cryptocurrencies are regularly locked to protect the projects associated with them.
This prevents early investors or team members from suddenly selling all of their tokens, which could lead to the collapse of the project.
Portions of these locked tokens are issued on certain dates and then distributed, for example, to investors and developers.
However, this also causes the available supply to suddenly increase sharply, which can cause the price of the coin to fall.
$4 billion worth of cryptocurrencies will be issued in May
The largest so-called “token unlock” in May came from Sui. The project is expected to issue approximately $1.15 billion worth of tokens on May 31.
The Pyth Network is unlocking an almost massive pile of tokens this month. The project will issue approximately $1.1 billion worth of tokens on May 20.
Aevo (AEVO), formerly known as Ribbon Finance, also has great unlock potential. Nearly $1 billion in AEVO tokens will be unlocked on May 15.
The rest of the token unlocks are not nearly as large, but they are no less significant. For example, Aptos will issue $101 million worth of tokens on May 12. Starknet will issue approximately $84 million worth of tokens on May 15.
Arbitrum then follows by opening the token on May 16 for $95 million and an immutable token on May 17 for $56 million.
Then on May 22, Avalanche will unlock approximately $320 million in tokens, and finally, Optimism will unlock $70 million in tokens on May 29.
These are by no means all the token unlocks that will take place in May. However, the tokens being unlocked from other projects in May are not nearly as large as mentioned above.
Keep in mind that large token openings have the potential to drive down prices, especially if overall market sentiment is not good. However, this is certainly not a guarantee, as not all investors will choose to sell right away.
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