June is poised to be a significant month for the cryptocurrency market, with approximately $3.3 billion worth of tokens unlocking and entering circulation. These unlocks represent the expiration of vesting periods for various crypto projects, meaning previously locked tokens will become available to team members, early investors, and the community.
Understanding Token Unlocks
Crypto projects often allocate tokens for different purposes, such as incentivizing team members, rewarding early investors, or funding future development. To prevent sudden market dumps and maintain price stability, these tokens are typically locked for a defined period, known as a vesting period. Once this period expires, the tokens are “unlocked” and can be traded or used by their holders.
There are two primary types of token unlocks:
- Cliff Unlocks: A large portion, or all, of the vested tokens are released simultaneously on a specific date.
- Linear Unlocks: Tokens are released gradually over a set period.
This June, $1.4 billion in tokens will be released through cliff unlocks, while $1.9 billion will be emitted via linear unlocks.
Key Token Unlocks in June
Several major crypto projects are scheduled to unlock substantial amounts of tokens in June. These unlocks are important to monitor, as they can influence token prices and market sentiment.
Metars Genesis (MRS)
Metars Genesis (MRS), an NFT project focused on AI partnerships, will unlock $193 million worth of tokens on June 21st. This unlock is intended to fund the project’s AI initiatives. MRS has been unlocking 10 million tokens monthly since March, already releasing close to $1 billion in tokens.
Sui (SUI)
Sui (SUI) is set to unlock 44 million tokens, valued at approximately $160 million, on June 1st. These tokens are allocated to the Mysten Labs treasury, early contributors, the community reserve, and Series B investors. A significant portion, exceeding $70 million, is designated for Series B investors.
Sui has already unlocked 3.3 billion tokens, representing roughly 33% of its total supply, and Tokenomist data indicates that another 5.22 billion tokens, worth nearly $20 billion, remain without a scheduled release date.
Aptos (APT)
Aptos (APT) is scheduled to unlock 11.31 million tokens, worth around $61 million, for its core contributors, foundation, community, and investors.
LayerZero (ZRO)
LayerZero (ZRO) will unlock 25 million tokens, valued at about $71 million, for its core contributors and strategic partners.
Fasttoken (FTN)
Fasttoken (FTN) is set to release 20 million tokens worth $88 million, allocated to its founders.
ZKsync (ZK)
ZKsync (ZK) will unlock over 760 million tokens, valued at approximately $49 million, to its investors and team members.
Potential Market Impact
Large token unlocks can create volatility in the market. The increased supply of tokens may lead to downward pressure on prices, especially if holders choose to sell their newly unlocked tokens. However, the impact can vary depending on several factors, including:
- Project Fundamentals: Strong projects with solid fundamentals are more likely to withstand the impact of token unlocks.
- Market Sentiment: Positive market sentiment can mitigate the negative effects of increased token supply.
- Unlock Schedule: Linear unlocks tend to have a less dramatic impact than cliff unlocks, as the supply increase is gradual.
- Communication: If a project communicates the token unlock strategy clearly and provides context to the community it can help alleviate fear and uncertainty.
Staying Informed
Tracking token unlocks is crucial for crypto investors. Websites like Tokenomist provide valuable data on token vesting schedules, helping investors make informed decisions.
Conclusion
The $3.3 billion worth of crypto tokens unlocking in June presents both opportunities and risks for the market. By understanding the dynamics of token unlocks and monitoring key projects, investors can navigate the market more effectively and make informed investment choices.