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How does token unlocking affect price?

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by COINS NEWS 13 Views

[Disclaimer: I do apologise for the very basic nature of this question. I’m simply trying to learn more about cryptocurrencies and how the market works. So please be kind and offer your wisdom so that I may be able to learn.]

Questions:

  1. How exactly does a token unlocking event work? I understand that it means “a release of unreleased tokens”, but is there anything more to it that I should be aware of?

  2. How does the unlocking event affect the price of a crypto? And I’m talking about a crypto that as already been trading in the market for a notable amount of time, not a crypto that is being launched for the first time.

P.S. Please avoid saying things like “you shouldn’t invest in crypto if you don’t understand such a basic thing”. This really doesn’t help my case at all. Thank you for your understanding.

Thank you very much!

submitted by /u/ahnafakeef298
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