Token Unlocks of the Week: APT, STRK, and SEI

Bittime - There are several token unlocks this week which are worth paying attention to. Among them are APT, STRK, and SEI which will open millions of new tokens. Check out its impact on the market and what you need to know in this article!

Token unlocks occur when crypto projects unlock tokens that were previously restricted based on funding agreements. In other words, tokens that are "locked" at a certain time can eventually be traded or distributed. 

While they can create opportunities for many investors, token unlocks also run the risk of affecting the price of the token in question, depending on the amount released and who gets it.

This week, three large projects will carry out token unlocks which are worth paying attention to by investors. Aptos (APT), Starknet (STRK), and Sei (SEI) will unlock a large number of previously locked tokens, and this could have a significant impact on the price and liquidity of each token. 

Below is further information regarding the three tokens that will be unlocked this week.

1. Aptos (APT) - Unlock 11.31 Million Tokens on December 11

Aptos (APT) is a Layer-1 blockchain designed to provide a secure and scalable foundation for decentralized applications (dApps). The project is getting a lot of attention thanks to its focus on security and performance, as well as its use of advanced technology to improve the overall blockchain experience. 

However, despite being considered a successful blockchain project, Aptos has also faced criticism regarding its venture capital-driven tokenomics model.

On December 11, Aptos will unlock 11.31 million APT (around IDR 180 billion) tokens. These tokens will be distributed to community members, core contributors and investors. 

With the current total circulating supply of around 535.76 million APT, this token release will increase the number of tokens circulating on the market and could affect short-term prices.

Investors should note that the release of these tokens could potentially add to selling pressure, even though the market may have already anticipated such an event. As use of Aptos as a platform for dApps grows, APT's long-term prospects remain attractive, but short-term volatility could increase.

Read also: Why Bitcoin and Altcoin Prices Are Down Today

2. Starknet (STRK) - Unlock 64 Million Tokens on December 15

Starknet is a ZK-Rollup based Layer-2 solution built to improve the scalability of decentralized applications (dApps) on Ethereum. Starknet aims to provide greater transaction capacity while maintaining security and decentralization, a major challenge for many blockchain networks.

On December 15, the Starknet project will unlock 64 million STRK (around Rp. 1.02 trillion) tokens, which will be allocated to investors and early contributors. 

With a current circulating supply of around 2.25 billion STRK, this is one of the biggest token unlocks this week and could have a major impact on the price of STRK in the market.

As a project with advanced technology and great potential to enhance Ethereum's capabilities, Starknet has attracted the attention of many investors. 

However, with token locks about to be unlocked, there may be concerns about the impact on short-term prices, especially if many tokens are dumped onto the market at once.

3. Sei (SEI) - Unlock 55.56 Million Tokens on December 15

Sei (SEI) is a blockchain platform built to provide high-performance infrastructure for decentralized finance (DeFi) and other decentralized applications (dApps). 

Introduced in the Cosmos SDK, Sei functions as a Layer-1 blockchain that emphasizes speed, scalability, and user-friendly features.

On December 15, Sei will unlock 55.56 million SEI (around Rp. 884 billion) tokens allocated to his team members. With the current circulating supply reaching around 3.98 billion SEI, this is a quite significant token unlock, considering that Sei is still in an intensive development stage.

Sei focuses on providing solutions for the DeFi ecosystem and decentralized applications that require high scalability. Although this project is promising, investors should be prepared for the volatility that may arise from a large token release.

Read also: Is XLM Good for Long Term Holding?

Impact of Token Unlock on the Market

A token unlock is an event that can impact the market in two ways: increasing liquidity and increasing the supply of circulating tokens. If many of the unlocked tokens are sold by unlock recipients, this could increase selling pressure and lower short-term prices. 

Conversely, if investors and contributors choose to hold their tokens, the impact on price could be more limited.

However, it is important to note that the long-term impact of a token unlock also depends on the quality and sustainability of the project. While large token releases can cause volatility, projects with strong fundamentals and clear use cases tend to recover over time.

Apart from APT, STRK, and SEI, next week there will also be several other token unlocks worth paying attention to, including Cardano (ADA), Ethena (ENA), and Axie Infinity (AXS). With a combined total value of more than $740 million (around IDR 11.7 trillion), this token unlock will be a major event in the global crypto market.

Read also: $HBAR Price Skyrockets 500%

Conclusion

Token unlock is an important event not only for blockchain projects, but also for investors active in the cryptocurrency market. With APT, STRK, and SEI unlocking their tokens this week, price movements could be very dynamic. 

It is important to monitor the market and understand the potential impact of this token release, both for short-term opportunities and long-term investments. Make sure to always do in-depth research before making an investment decision, as the volatility of the crypto market can greatly affect the assets you hold.

FAQ 

What is Aptos (APT)?

Aptos is a Layer 1 Proof-of-Stake (PoS) blockchain that uses a unique smart contract programming language known as Move. This language was developed independently by Meta Diem blockchain engineers.

What is Starknet (STRK)?

Starknet is a Layer-2 blockchain that operates on top of Ethereum and uses ZK-Rollup technology to scale. This technology allows the network to combine multiple transaction executions into a single off-chain proof, which is then sent to Ethereum as a single transaction.

What is Sei Network (SEI)?

Sei Network is a layer-1 blockchain specifically designed to support fast and efficient trading in the world of decentralized finance (DeFi).

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Reference 

BeIn Crypto, 3 Token Unlocks to Watch Next Week, accessed December 11, 2024.

Tokenomist, Token Unlocks Dashboard, accessed December 11, 2024.

Author: Y