As reported by AZCoin News, Aptos Labs is set to unlock 4.5 million APT tokens on April 12th, increasing the circulating supply of APT by 0.5%.
The value of the tokens to be unlocked is estimated to be over 50 million USD. However, it is important to note that around 84% of the total APT supply remains locked.
Token unlock is an automated process of releasing tokens into circulation on any blockchain. Typically, the unlock time is pre-determined by the project. The addition of new tokens to the market allows investors, developers, or holders to sell their assets, creating selling pressure in the market. But with fundamental demand, investors or traders can use this opportunity to buy more tokens, thus helping to control the selling momentum. Therefore, it is still too early to conclude whether APT will experience a sell-off or not.
APT has seen an impressive upward trend in recent days. Since last weekend, the token with a market capitalization of 2.3 billion USD has increased by more than 14%, parallel to Bitcoin’s outstanding price performance. However, as of now, APT is showing signs of a downturn, with three 1H long-bodied red candles. Bitcoin also unexpectedly dropped below the 30,000 USD mark, which was just recently re-established yesterday.
Aptos is a new blockchain that launched its mainnet in October last year and caused a stir with a thousand-dollar airdrop. The platform was founded by Shaikh and Avery Ching, both of whom previously worked with the Diem project at Meta (formerly Facebook).
This blockchain uses Move, a programming language based on Solana’s Rust, which was developed by Meta for Diem. To date, Aptos has successfully raised 350 million USD through several rounds of funding last year.
Read more:
- Solana Vs. Aptos: Which Will Come Out On Top?
- Sui CTO Sam Blackshear Criticizes Aptos Network For Pressure Tactics At MoveConLive
- Aptos Launches NFT Bridge On Wormhole, Expanding Interoperability Across Chains