ApeCoin—the BAYC-inspired decentralized project with an Ethereum-specific token—is all set to reward its launch contributors by initiating a token unlock. As many as 25 million tokens (APE), valued at $132 million (at the time of writing), are to be given out.
The unlock by ApeDAO, the treasury behind the unlock, will benefit contributors that range from individuals to companies. The companies involved are those that backed and funded the project.
The token unlock was supposed to happen on 17 September 2022, six months after Apecoin’s launch. However, no additional details have been released as of now.
What the crypto ecosystem can expect from the token unlock
ApeCoin’s March launch attracted immense hype. The token unlock gig was expected to bring back some of the now fizzled-out hype.
However, since most narratives involving Ethereum PoS hint at an ETH supply crunch, it’s possible that APE’s token unlock initiative might increase the supply and add to existing bearish sentiments.
So far, though, the move has been positive for APE, which is still enjoying weekly gains of 9.22%.
How will the token unlock impact APE investors?
APE has a fixed supply of 1 billion tokens. As of now, 318 million APE tokens are in circulation. A token unlock will bump up the circulating supply by close to 8%, which might impact the prices negatively.
However, it would be interesting to see whether the launch contributors sell or hold onto the tokens, after receiving the rewards. Unless APE staking is introduced, contributors receiving the rewards will have no incentive to hold on to the APE tokens. Immediate offloading might add to the selling pressure and will weigh down on the APE’s price.