What Really Happens After Crypto Token Unlocks? Examining Cases like $SOL, $DYDX, and $ARB?
Token unlocks in cryptocurrency refer to the release of previously locked tokens into the market, usually as per a schedule outlined in a project’s whitepaper. These tokens are often reserved initially for stakeholders like developers and investors to control initial distribution and prevent market oversupply. The purpose of token unlocks is to introduce tokens gradually, mitigate price volatility, incentivize long-term project support, and sometimes comply with regulatory requirements. These events are closely watched by investors and traders, as they can significantly influence a token’s supply, market price, and overall valuation.