$900M in proprietary tokens are set to be released in February.
The digital asset market is gearing up to release nearly $900 million worth of proprietary tokens this month, with projects like Avalanche, Aptos, and The Sandbox leading the charge.
Cryptovesting is the process of locking up digital assets for a certain period of time before the holders can fully access or transfer them from their wallets. The practice is designed to prevent early investors from dumping their tokens for a quick profit and leaving the business while trying to encourage long-term commitment to the project.
According to data provider Token Locks, around $900 million worth of tokens will be released in February. Among the tokens to be released are Avalanche (AVAX), Aptos (APTOS), Sandbox (SAND), Optimism (OP) and Sui (SUI).
Among the projects releasing tokens, Avalanche unlocks the largest amount. In the year At the time of writing, the tokens are worth about $320 million. Token Unlocks highlighted that the tokens have been allocated to the Avalanche Foundation, the project's strategic partners and team members, and airdrops.
Layer 1 blockchain Aptos will release 24.8 million crypto tokens on February 11, which are worth around $233 million at the current market price. About $180 million in tokens have been allocated to top contributors and investors, while another $39 million in tokens are for the community and foundation.
Related: Avalanche $100M memecoin fund Eligibility criteria: Must be one month old.
Metaverse project sandbox is releasing 209 million tokens worth about $90 million. More than $40 million worth of tokens have been allocated to the company's vaults, while the rest will be released to the team and its advisors on February 14.
And on February 29, Optimism will release 24 million OP tokens, worth around $70 million, to its core contributors and investors. Meanwhile, Sui will launch $53 million in tokens for its community access program.
Tokenomics suggests that a sudden increase in token distribution can negatively impact the market value of cryptocurrencies.
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