The digital asset market is gearing up for about $900 million worth of token issuances this month, with projects like Avalanche, Aptos and The Sandbox leading the way.
Cryptocurrency transfer is the process of locking digital assets for a predetermined amount of time before holders can fully access them or transfer them out of their wallets. This practice is intended to prevent early investors from quickly dumping their tokens for profit and leaving the business, while attempting to encourage long-term commitment to the project.
About $900 million worth of tokens will be issued in February, according to data provider Token Unlocks. Some of the tokens that will be released include Avalanche (AVAX), Aptos (APTOS), The Sandbox (SAND), Optimism (OP) and Sui (SUI).
Of the projects issuing tokens, Avalanche unlocks the largest amount. The PoS blockchain project is expected to issue 9.5 million tokens on February 22. At the time of writing, the tokens are worth approximately $320 million. The token unlock highlighted that tokens are distributed among the Avalanche Foundation, strategic partners and project team members, as well as airdrops.
Level 1 blockchain Aptos will issue 24.8 million cryptocurrency tokens on February 11, valued at approximately $233 million at current market prices. Approximately $180 million in tokens is allocated to core participants and investors, with another $39 million in tokens earmarked for the community and foundation.
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Metaverse project The Sandbox will unlock 209 million tokens worth approximately $90 million. Over $40 million worth of tokens have been distributed to the company's reserves, with the rest being unlocked for its team and consultants on February 14th.
And on February 29, Optimism will issue 24 million OP tokens worth approximately $70 million to its main participants and investors. Meanwhile, Sui will unlock $53 million worth of tokens for its community access program.
As unlocks increase the number of tokens in circulation, prices may be subject to extreme volatility.