6 Token Unlocks to Watch This Week July 1-7

Token unlock refers to the release of tokens previously blocked under fundraising terms. Projects strategically plan these releases to avoid market pressure and stabilize token values. However, factors such as lack of liquidity or early investor profit-taking can significantly impact an asset’s dynamics. These unlocks represent key moments for each project, influencing their circulating supplies and potentially affecting market trends. Investors should stay informed, assess risks, and consider the implications of these events before making investment decisions. Here are six major token unlocks to watch this week.

Key Takeaways

• Scheduled token unlocks by projects like dYdX, Sui, and io.net aim to distribute tokens to investors, teams, and community reserves, potentially affecting circulating supplies and market trends.

• From decentralized futures trading to blockchain credentials, each project’s unlock aligns with its utility and governance token strategy.

• Investors should stay informed, research thoroughly, and consider risk tolerance amidst cryptocurrency market volatility.

dYdX (DYDX)

• Unlock date: July 1
• Number of tokens unlocked: 8.33 million DYDX
• Current circulating supply: 268.29 million DYDX

In early 2023, dYdX, the largest decentralized perpetual futures trading protocol, reported changes to its initial tokenomics. According to the update, 27.7% of dYdX’s total supply will go to early investors, 26.1% to the treasury, 15.3% to the team, and 7.0% to future dYdX employees and consultants. Most DYDX unlocked on July 1 will be distributed among investors and the project team, with the remaining tokens reserved for future employees.

Read more: How to Buy: dYdX (DYDX)

Sui (SUI)

• Unlock date: July 1
• Number of tokens unlocked: 64.19 million SUI
• Current circulating supply: 2.42 billion SUI

Sui is a high-performance Layer-1 blockchain that utilizes a Proof-of-Stake consensus to increase network operation and security. The project was developed by Mysten Labs, a company founded in 2021 by former Novi Research employees who created the Diem blockchain and the Move programming language. The SUI token facilitates governance, enabling token holders to vote on important proposals and shape the platform’s future. The next unlock will happen on July 1, releasing a significant portion of tokens set aside for Series A and B participants, community reserve, and the Mysten Labs treasury.

Read more: How to Buy: Sui (SUI)

io.net (IO)

• Unlock date: July 1
• Number of tokens unlocked: 7.5 million IO
• Current circulating supply: 65 million IO

io.net is a DePIN protocol built on the Solana blockchain infrastructure, focusing on providing computing power from GPUs to artificial intelligence (AI) and machine learning (ML) companies. The project gained significant attention after successfully raising $30 million in a Series A round led by Hack VC. IO is the utility and governance token of the io.net. Users utilize it for staking, delegating, paying fees, rewarding node runners, and accessing DAO voting within the platform. On July 1, io.net will distribute 7.5 million IO tokens to its community members.

Read more: How to Buy: io.net (IO)

Galxe (GAL)

• Unlock date: July 5
• Number of tokens unlocked: 3 million GAL
• Current circulating supply: 115 million GAL

Galxe (previously Project Galaxy) is a Web3 credential data network that empowers developers to leverage digital credentials. It enables projects to reward and engage their users through various credential-based activities. The GAL token is the native utility token of the Galxe platform, used for governance, staking, and accessing premium features. On July 5, the project will unlock and distribute 3 million GAL tokens among the Galxe Foundation, team, and community.

Read more: How to Buy: Galxe (GAL)

Hashflow (HFT)

• Unlock date: July 7
• Number of tokens unlocked: 13.62 million HFT
• Current circulating supply: 406 million HFT

Hashflow is a decentralized exchange (DEX) that facilitates seamless cross-chain trading and asset swaps with zero slippage. It leverages advanced market-making techniques to pr efficient and accurate pricing. The HFT token is the native utility token of the Hashflow platform, used for governance, staking, and rewarding users. On July 7, the project will increase the circulating supply by 13.62 million HFT. According to TokenUnlocks, early investors and the core team will receive 7.63 million tokens. The remaining coins will be used for community rewards and ecosystem development.

Read more: How to Buy: Hashflow (HFT)

Ethena (ENA)

• Unlock date: July 7
• Number of tokens unlocked: 14.89 million ENA
• Current circulating supply: 1.61 billion ENA

Ethena is a synthetic currency protocol built on Ethereum. It provides a native cryptocurrency solution independent of traditional banking, and also offers global users a dollar-denominated savings instrument called the “Internet Bond”. The ENA token enables holders to vote on governance proposals. On July 7, the project will unlock almost 15 million ENA dedicated to ecosystem development. Other next-week unlocks include Maverick Protocol (MAV), ZetaChain (ZETA), and Acala (ACA) with a total value exceeding $122 million.

Read more: How to Buy: Ethena (ENA)

Investor Caution

Even though the cryptocurrency journey has been exciting, remember that the crypto market can be volatile. Do your research, assess your risk tolerance, and consider the long-term potential of any investment.

Conclusion

In July 2024, several major tokens are set to unlock, impacting their respective projects and token holders. dYdX, Sui, io.net, Galxe, Hashflow, and Ethena are among those releasing significant amounts of tokens, affecting their circulating supplies and potentially influencing market dynamics. These unlocks mark important milestones for each project, with allocations going to investors, teams, and community reserves. As these events unfold, investors need to remain vigilant, conduct thorough research, and evaluate their risk tolerance amidst the crypto market’s inherent volatility. Understanding these token releases is crucial for making informed investment decisions moving forward.

FAQ

What is a token unlock in cryptocurrency projects?

A token unlock refers to the scheduled release of tokens that were previously restricted under project fundraising terms. These releases are carefully planned by projects to manage market dynamics and ensure stability in token values.

How do token unlocks impact cryptocurrency projects?

Token unlocks can significantly affect a project’s circulating supply and market trends. They allocate tokens to early investors, project teams, and community reserves, influencing governance decisions and project development.

What should investors consider during token unlock events?

Investors should stay informed about upcoming token unlocks, assess the risks associated with increased token supply, and evaluate the implications for market volatility. Researching each project’s tokenomics and understanding the distribution plans is essential for making informed investment decisions.