Aptos Token (APT) prices are affected today following the token unlock scheduled by the team.
The native token of the much-hyped Aptos Network has taken a hit during the Asian trading session on Monday morning. This decline was greater than that of the overall market, suggesting that a token unlock was the reason.
On February 12, Aptos unlocked 4.5 million APT tokens, equivalent to approximately 0.45% of its total supply. Furthermore, the value of Unlocked at APT prices at the time was approximately $62.5 million.
The next scheduled unlock for Aptos is on March 12, when another 4.5 million tokens will be released to the market.
Prior to the unlock, Aptos holders were assured of a pump similar to the tokens issued last time. However, today the opposite has happened.
Most of the Aptos supply is still off
According to Token Unlocked, 85% of the APT token supply is still locked. They are scheduled to be released every month for the next ten years.
Currently only 14.8% of the supply is unlocked, giving a market cap of approximately $1.95 billion with 167.7 million tokens in circulation.
Projects often use these tokens to unlock shares that are locked up in the crypto market over a specified period of time. The purpose of this process is to align incentives for all stakeholders. However, this can lead to short-term volatility and a drop in prices at that point in time.
Aptos has been criticized by the cryptocurrency community for its tokenics, which is heavily dominated by venture capital. The Ethereum rival blockchain has been developed by former Facebook employees working on the defunct Diem project.
Its token price has soared by 278% this year since the beginning of January. However, the momentum appears to be waning as APT has declined from its all-time high on January 26.
More token unlocks are scheduled this week for Sandbox (SAND), dYdX (DYDX), Euler (EUL), ApeCoin (APE) and 1inch (1INCH), and prices could react similarly.
price tank
Today, APT is down about 8% from its intraday high of $14 a few hours ago to below $13. At the time of writing, APT was changing hands for $13.08.
Moreover, APT has lost nearly 30% in the past fortnight as it retraced from the peak prices of late January.
APT peaked at $19.92 last month, but has since declined by 34%, and the token unlock has accelerated those losses.
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