Some of the most high-profile token unlocks are scheduled to happen over the second week of July. These unlocks have made an impact on their price, Aptos (APT), Immutable X (IMX), Cheelee (CHEEL). By doing so, they will introduce new tokens into the circulating supply. As such, phenomena like the ETH merge and ETH Shanghai are hugely scrutinized by investors, given their ability to shift token prices and overall market dynamics.
The order of unlocks Cheelee (CHEEL) will be the first unlocking on July 10 with 2.67 million CHEEL tokens. This is worth 0.27% of the total supply, limited to 1 billion CHEEL.
The next unlock is much bigger, at 124.52 million IMX tokens. This constitutes 1.23% of the total supply. With a max supply of 2 billion IMX, the current circulating supply is at 1.8 billion IMX. As such, the unlocked tokens are currently valued at around $50 million.
Aptos (APT) is the last project on this week’s slate of unlocks, releasing on July 12th, with 11.31 million APT tokens coming into circulation. This represents 0.98% of the total supply. Aptos has a fixed total supply of 1.15 billion APT, with a today’s circulating supply of 644.5 million APT.
Token unlocks are often very publicized and pre-established events where tokens previously locked away are released, or unlocked, into circulation. These unlocks significantly affect the token’s price as they flood the market with new tokens. If there is suddenly a lot more supply but demand is constant, the value can decrease.
The market’s reception of these unlocks is a mixed bag. Ultimately, the project’s perceived value is the single most important determinant of success. Beyond that, overall market conditions and the specifics of the unlock schedule play a big role, too. Large unlocks can sometimes create selling pressure. If the market realizes it should expect a weaker demand, the effect can be significant. Moreover, smartly transferring the unlocked tokens could further minimize the impact.
