🤔 If unlocks can generate selling pressure… why do they exist?

This question seems simple, but it explains a large part of how crypto projects work.

When a project is born, it normally doesn’t distribute all of its tokens immediately.

Why?

Because it needs to incentivize the people who build and finance the project over the years.

That’s why you see concepts like:

🔒 Lock-up
⏳ Vesting
🔓 Token unlock

An investor can receive their tokens progressively.

The team can also have a staggered release.

And certain tokens can be allocated to ecosystem rewards.

The problem shows up when a huge unlock hits a market with low demand.

That’s when selling pressure can increase.

But remember:

Unlock ≠ automatic price drop.

The reaction depends on what the owners of those tokens do.

🧠 Understanding this can help you look at an altcoin in a completely different way.

Did you know the concept of vesting before entering crypto?

#Tokenomics #Crypto #Altcoins #DeFi #Blockchain