Tracking Token Unlocks for Smarter Crypto Investing

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Token unlocks can shake up the market, causing prices to pump or dump depending on supply and demand. Large unlocks often lead to sell-offs as early investors cash out, while smaller ones may have little impact. Some tokens may see a short-lived pump before a drop, while others could benefit from strong narratives like DeFi or gaming. Watching unlock schedules can help traders anticipate market moves and manage risks effectively.

With massive token unlocks coming up this year Binance has introduced a major update to its market cap methodology by incorporating token unlock schedules into its calculations. This move aims to boost transparency, helping traders make more informed decisions. 

A New Way to Track Market Caps

In simple terms, starting February 14 with the new update, Binance will calculate market capitalization by including unlocked tokens in the circulating supply. If unlocking data isn’t available, those tokens won’t be counted. Users can check each project’s token unlock details in the project overview section on Binance’s website and app.

If unlock data is unavailable, Binance will exclude those tokens from its market cap and circulating supply figures. This prevents artificially inflated valuations and ensures users only see publicly accessible token data.

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Big Unlocks Incoming

Next week, the market will see a flood of newly unlocked tokens, with over $240 million worth of assets entering circulation. Fasttoken (FTN), QuantixAI (QAI), and ApeChain (APE) will see $113 million unlocked collectively. Meanwhile, MELANIA, a PolitFi memecoin, will experience the largest unlock, releasing 40.6% of its supply—worth nearly $85 million.

By introducing this update, Binance aims to provide greater transparency and help investors navigate the risks of token unlocks, reducing sudden market shocks.

Why Does This Matter?

Token unlocks can shake up prices, making them go up or down quickly. If a big chunk of tokens is released, it can create sudden market swings. Smart traders watch these events closely to spot opportunities, but it also comes with risks. Keeping an eye on unlock schedules helps you understand a project’s long-term value and how its price might move in the future.

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