$4 billion in crypto to be released in May: get ready

A huge mountain of different crypto coins will be released this month and this could have consequences for the prices of these coins.

As much as $4 billion worth of tokens will be unlocked in May and it is advisable to be prepared for this.

Why are crypto locked first?

Several big names are releasing portions of their locked-up tokens in May. We are talking about coins such as sui (SUI), pyth network (PYTH), aevo (AEVO), avalanche (AVAX), arbitrum (ARB), optimism (OP), aptos (APT), immutable (IMX) and starknet ( STRK).

Such cryptocurrencies are regularly locked up to protect the associated projects.

This prevents early investors or team members from suddenly selling all their tokens, which can cause a project to collapse.

Parts of these locked tokens are released on certain dates and are then distributed, for example, to investors and developers.

However, this also causes the available supply to suddenly increase sharply, which could potentially depress the price of a currency.

$4 billion worth of crypto coins to be released in May

The largest so-called ‘token unlock’ in May is from Sui. The project is expected to release approximately $1.15 billion in tokens on May 31.

Pyth Network is unlocking an almost equally huge pile of tokens this month. The project will release approximately $1.1 billion in tokens on May 20.

Aevo (AEVO), formerly Ribbon Finance, also has a huge unlock. Approximately $1 billion in AEVO tokens will be unlocked on May 15.

The rest of the token unlocks are not nearly as big, but no less significant. For example, Aptos will release $101 million in tokens on May 12. Starknet will release approximately $84 million tokens on May 15.

Then Arbitrum follows with a token unlock on May 16 of $95 million and Immutable on May 17 with $56 million.

Then on May 22nd, Avalanche will unlock approximately $320 million in tokens and finally, Optimism will unlock $70 million in tokens on May 29th.

These are by no means all the token unlocks that will take place in May. However, the token unlocks from the other projects in May are not nearly as big as the above.

Keep in mind that large token unlocks have the potential to significantly depress prices, especially if general market sentiment is not favorable. However, that is certainly no guarantee, not all investors will choose to sell immediately.

Post Views: 2,076