Tokens of key gaming and NFT projects Sandbox and ApeCoin could see short-term selling pressure as planned unlocks release a cumulative $125 million worth of the tokens in the coming days.
Token unlocks refer to the release of previously locked or restricted tokens into the market. These tokens become available for trading, buying, and selling after the end of their vesting period – and are typically vested for early investors, treasury, and public sale investors.
Data shows $95 million worth of Sandbox’s SAND will be released in early European hours on Wednesday, while nearly $25 million of ApeCoin (APE) will be released Friday.
The unlock represents 10% of SAND’s total supply and will bring the total circulating supply to nearly 90%. SAND is used for activities in the Sandbox’s virtual worlds and has a $1 billion market capitalization at press time.
On the other hand, ApeCoin’s unlock represents just over 2.5% of the circulating supply - and over 35% of the token’s total supply will remain unlocked. These tokens are vested and allocated to the creator Yuga Labs, the ApeCoin DAO, and other network stakeholders.
SAND prices were down 2.3% in the past 24 hours, data shows, while APE is up 1.6%.
Gaming remains one of the hottest crypto narratives for 2024 among traders because crypto games onboard users to the broader crypto ecosystem and reward players in crypto for using their platforms.
Source : CoinDesk by Shaurya Malwa / Feb 14, 2024