underperformed the crypto market ahead of an almost $300 million supply event due this week that will increase the number of circulating tokens.The difficult week occurred ahead of 24.84 million of previously locked-up APT tokens that are scheduled to be released on April 12,shows. The actual time when assets can be moved after the release could be around 1-2 days after the event, the website adds.
Some $141 million worth of tokens will be distributed to core contributors, $100 million to investors, $38 million among community members. $16 million in tokens are earmarked for the ecosystem development foundation. Token unlocks happen because the supply of many cryptocurrencies are locked up in vesting to prevent insiders – early investors, team members – from dumping tokens en masse. Prices historically decline around such events, as the supply increase outpaces investor demand for the asset, according to research by crypto analytics firm The Tie.
The APT tokens to be released represent just 6% of the current circulating supply, but is nearly double the daily trading volume on exchanges, perin a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.