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What Are Token Unlocks?
Overview
Token unlocks release previously locked cryptocurrency tokens to team members, investors, or the ecosystem on a scheduled basis. These events can create significant sell pressure and are critical to understand for timing trades. Knowing when large unlocks are scheduled allows you to track token unlock schedules and plan entries or exits accordingly. Explore proven strategies for trading around token unlocks or monitor live unlock events on our crypto market dashboard.
Key Takeaways
- Locked tokens are restricted from trading until a vesting schedule releases them
- Cliff unlocks release a large batch at once; linear vesting drips tokens gradually
- Large unlocks relative to circulating supply can cause sharp price drops
- Project teams, VCs, and early investors typically have the longest lock-ups
Practical Tips
- Check token unlock schedules before buying any altcoin position
- Be cautious around cliff unlock dates — sell pressure is concentrated
- Compare unlock size to average daily volume to gauge potential impact