You bought a promising coin, it even started to rise, but suddenly the price plummets by 30% for no apparent reason? Congratulations, you have just encountered unlocks. Today we will learn to see these "pitfalls" in advance.
1. What is Vesting and Unlocks?
Every crypto project is backed by developers and early investors. They receive their tokens not all at once, but gradually — this process is called vesting.
Unlocks are specific dates when a large number of coins become available for sale.
For early investors who bought the coin 10–100 times cheaper than you, the unlock is the moment to secure profits. When they start selling, the price rapidly drops under the pressure of supply.
2. Inflation Trap (Emissions)
If only 5% of the total number of coins (Total Supply) is currently in circulation, it means that the remaining 95% will eventually enter the market.
Tip: Always look at the ratio of Circulating Supply (what is already trading) to Max Supply (how many will be in total). If the gap is huge — be prepared for constant pressure on the price.
3. Where to watch the 'dumping' of coins?
You don't need to be a programmer to find this out. Use special filter services:
TokenUnlocks or Vestlab. Here you will find timers for the next unlocks. If in 2 days tokens worth $100 million are 'dumped' on the market — this is a bad time to enter a position.
Conclusion
A project may have great technology, but terrible tokenomics will kill the token's price. Always check: who, when, and how many coins will be received.
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👉 In the next post, we will peek into the 'wallets' and discover who is actually behind the project: top funds or anonymous manipulators.
Disclaimer
Conclusions about price pressure are based on fundamental economic laws of supply and demand.
The impact of tokenomics on the success of a project is an observation of market trends, but it is not a guaranteed outcome for every asset.
