The latest crypto project to unlock a batch of tokens is ApeCoin. As predicted, its native coin APE has seen prices plummet in response.
On Feb. 16, the nonfungible token (NFT) Bored Ape Yacht Club (BAYC) platform ApeCoin released 7.3 million APE coins on the market.
At the time of the unlock, the coins were worth approximately $41.7 million. Furthermore, the unlock represented around 0.7% of the total supply of APE.
As expected, the price of the BAYC governance and utility token has plunged following the latest unlock.
ApeCoin Unlock Schedule
The next scheduled token unlock for ApeCoin is slated for March 17. On or around that date, a further 40.6 million APE tokens will be released worth an estimated $215 million. Furthermore, the next unlock is substantially larger, representing 4% of the entire supply. This is likely to have a much larger impact on APE prices.
ApeCoin will continue releasing tokens every month until March 2026. In addition to next month’s large unlock, another big one is scheduled for September, according to Token Unlocks.
Only 38.3% of the APE supply is currently unlocked, giving it a market capitalization of $1.9 billion. Future unlocks are designed to align stakeholder incentives but will likely cause more price volatility.
ApeCoin tokenomics are heavily slanted towards the team, treasury, and Yuga Labs, the company behind the BAYC collection. Just under half of all APE tokens are delegated to the treasury. As much as 38% of them are slated for Yuga Labs and launch contributors, and 15% are destined for the airdrops.
APE Price Plummets
APE prices plunged from an intraday high of just over $5.70 to a low of $5.15 a few hours ago during the morning of Feb. 17.
The 9.7% slide coincides with the timing of the unlock. However, crypto markets are pulling back today. At the time of press, APE had recovered slightly to trade at $5.20.
ApeCoin has now wiped out all gains it made over the past few days. Furthermore, the NFT governance token is currently down 80% from its April 2022 all-time high of $26.70.
Nevertheless, the BAYC collection remains one of the top sellers on NFT marketplaces.
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