$600+ Million in Token Unlocks Is Coming Soon: Here’s Why DYDX, 1INCH and IMX Could Dump

Key highlights:

• Over the next week, some big names are unleashing over $600 million worth of previously lockedup tokens.
• DYDX is looking to drop an unlock bomb worth nearly half a billion dollars on December 1st. That’s equivalent to 84% of its total coin supply.
• Decentralized exchange protocol 1INCH will loosen the shackles on around $33 million worth- almost 10% of its circulating supply.
• Immutable’s token IMX is set to unleash $11 million worth of new coins.

As many crypto projects have vesting periods for early investors and team members, scheduled “unlocks” of vested tokens are a regular occurrence. Over $600 million worth of tokens from some of the biggest layer 1 and DeFi projects will become free-trading over the next seven days.

Top 7 Biggest Token Unlocks in the Next 7 Days

Monitoring of vested tokens and future unlock events is an important step to make more cautious and, in the end, better trading decisions. Let’s take a look at this and some other biggest unlocks coming in the next 7 days, including… pic.twitter.com/BU4CYzquoe

— TOP 7 ICO | #StandWithUkraine?? (@top7ico) November 27, 2023

As seen in the helpful graphic, a massive wave of coins will soon be released from their vesting periods and added to the circulating supply. When this occurs, it tends to upset the delicate balance of supply and demand. More importantly for traders – it often translates to short-term downward price pressure.

So what exactly is a “token unlock”? Well, imagine if you had finally earned your long-awaited employee bonus, but the company told you that you could only access it slowly over the next few years. That’s essentially how token vesting works- early investors and team members receive coins, but can only sell a portion each month or quarter.

This protects the project from being dumped right away. But it also means a consistent trickle of new supply entering the market. Large unlock events multiply and trickle into a temporary torrent. When you combine this supply spike with natural seller behavior (cashing out before/after unlocks), price dips are not unusual.

With over $600 million worth of tokens ready to loosen their shackles, the three biggest unlocks to be aware of are DYDX, 1INCH, and IMX. Let’s take a closer look at each:

DYDX

The dex token is looking at almost $480 million worth (84% of its market cap!) unlocking on December 1st. Traders who have been patiently waiting to take profits may do so en masse.

1INCH

Nearly $33 million worth of 1INCH tokens face unlocking on the same day as DYDX. With that representing a hefty 9.48% of the token’s current total supply, it’s sensible for the price to see a temporary discount. But for longer-term holders, this may create a nice entry point before volume picks back up.

IMX

Immutable’s token will see $11 million unlocked, comprising 0.68% of its circulating supply. On its own, this may not cause too much fuss. But when you factor in the timing alongside DYDX and others, traders betting on short-term volatility may also target IMX. The good news is that like 1INCH, any dip could be a gift for patient investors.

Of course, not every token facing upcoming unlocks is destined to fall. It’s always wise to do your own research on the project’s fundamentals and community strength before making assumptions. But for those trading more short-term timeframes, having unlock schedule data in your back pocket could help you pick your entries and exits more strategically.