Long-Term Vesting: A Deep Dive into Tokens Still Unlocked Post-2022 and Their Market Implications
The cryptocurrency market has been experiencing a bearish trend in recent times, with many tokens seeing significant declines in value. However, it is essential for investors to understand the vesting schedules of tokens launched before 2022 to make informed decisions about their investments. In this article, we will delve into the long-term vesting periods of certain tokens and explore their market implications.
One of the primary concerns raised by investors is the potential imbalance between unlocked and estimated circulating supply of a token. This imbalance can render the project precarious or even toxic from a market perspective. For instance, IMX has an 10% locked supply, which is expected to be released by October 2025, whereas FIL and YGG have 60% and 22% respectively, scheduled for July 2030 and February 2027.
A closer look at the vesting schedules of tokens that have launched before 2022 reveals some interesting insights. dYdX, a decentralized derivatives exchange, has only released around 68% of its total supply. This means that a substantial portion of the remaining supply is set aside for investors, team members, and reserves. The unlocking of these reserved supplies may significantly impact the market behavior of $DYDX. In particular, it could indicate that holders are simply holding onto their tokens in anticipation of a potential price dip.
On the other hand, we have Celo, which has extended vesting period beyond 2050. This prolonged timeframe for unlocking suggests that the project’s founders and stakeholders will continue to control a considerable portion of the token supply. Their strategic decisions will play a crucial role in shaping the long-term price dynamics of $CELO.
In conclusion, investors should be aware of the vesting schedules of tokens launched before 2022 to accurately forecast potential price movements and assess overall supply-demand dynamics. While tokens with extended vesting periods may not experience immediate inflationary pressure, they could potentially see a market upswing when the remaining tokens are released. Conversely, tokens that have almost completed their unlocks might provide stability, whereas those still holding large amounts of locked supplies could be in for a surprise as more tokens become available.
In the end, the unlocking schedules of these tokens will determine how they react to changes in the overall market sentiment and liquidity conditions.
Source: https://nulltx.com/long-term-vesting-a-deep-dive-into-tokens-still-unlocked-post-2022-and-their-market-implications/