A token unlock can create selling pressure. But it's not automatically bearish.
Here's the simple idea:
A project has tokens that aren't currently circulating.
At the unlock date, some of those tokens become available.
More supply can enter the market.
The important questions are:
→ How many tokens are being unlocked? → Who receives them? → What percentage of circulating supply is that? → Is there enough demand to absorb them?
A $20M unlock means something very different for a $500M token than for a $20B token.
Don't just look at the dollar value.
Look at the unlock relative to the circulating supply.
#cryptoeducation #Tokenomics #altcoins #EducationalContent #BinanceSquareTalks
Here's the simple idea:
A project has tokens that aren't currently circulating.
At the unlock date, some of those tokens become available.
More supply can enter the market.
The important questions are:
→ How many tokens are being unlocked? → Who receives them? → What percentage of circulating supply is that? → Is there enough demand to absorb them?
A $20M unlock means something very different for a $500M token than for a $20B token.
Don't just look at the dollar value.
Look at the unlock relative to the circulating supply.
#cryptoeducation #Tokenomics #altcoins #EducationalContent #BinanceSquareTalks
