Nearly $875 million worth of crypto tokens from projects like Aptos, Arbitrum, Starknet, and Sui will be unlocked in June as their vesting periods come to an end.
Data from Token Unlocks indicates that the largest portion of tokens set to be unlocked in June 2024 belongs to Aptos (APT), Arbitrum (ARB), Starknet (STRK), and Sui (SUI).
Understanding Crypto Vesting
Vesting is a common practice in the crypto world to prevent team members or early investors from selling all their tokens at once, which could flood the market and cause a sharp decline in token prices. Vesting locks tokens for a specified period, gradually releasing them to mitigate market pressure.
Major Token Unlocks in June
Arbitrum: On June 16, Ethereum layer-2 network Arbitrum will unlock 92.65 million ARB tokens worth $105.6 million. Out of this, $64 million in tokens are allocated to the project’s team and advisors, while $41.6 million will be released to its investors. Previously, Arbitrum released 1.1 billion ARB tokens in March, which led to a 50% drop in the token’s price from $2.27 to $1.13.
Aptos: The layer-1 blockchain project Aptos will release 11.1 million APT tokens worth $102.6 million in June. Scheduled for June 12, the unlock includes $12.1 million for its foundation, $29.1 million for its community, $35.9 million for its core contributors, and $25.5 million for its investors.
Starknet: Following Aptos, zero-knowledge proofs project Starknet will unlock a significant number of tokens. On June 15, the ZK protocol will release 64 million STRK tokens worth $78 million for its early contributors and investors.
Summary Review: The upcoming token unlocks in June, totaling nearly $875 million, highlight the substantial impact of vesting periods ending across multiple projects. As these tokens enter the market, careful observation will be needed to assess their effects on market dynamics and token prices.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
