How to Profit from Token Unlocks: Shorting AEVO, PYTH, and MEME

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How to Profit from Token Unlocks: Shorting AEVO, PYTH, and MEME

May appears to be a significant month for token unlocks, with several projects seeing substantial unlocks. In this article, we are taking a look at the biggest token unlocks and what this could mean for price and market reaction. How can you anticipate these events and perhaps profit from them?

What are Token Unlocks?

To put it simply, token unlocks refer to the release of tokens that were previously locked or restricted from being traded or sold. It’s very simple if you know how funding for crypto projects works. When a cryptocurrency project conducts an initial coin offering (ICO), initial exchange offering (IEO), or other token sale events, a portion of the tokens that is sold to investors is held in reserve and stays locked.

These reserved tokens are often subject to a lockup period or vesting schedule, which means they cannot be traded or sold until a specific date or milestone is reached.

This is done to signal the alignment of the project’s team and early investors with the long-term success of the project and to prevent large amounts of tokens from being dumped on the market and on new investors.

That is until the token unlock date arrives, and people that were in it from the start can start selling their conviction bets from sometimes years ago, potentially impacting the token’s price.”

Biggest Token Unlocks of May

Knowing what token unlocks are, we can start understanding what the biggest token unlocks of May are.

  1. AEVO: The AEVO token has by far the largest unlock in terms of both USD value ($1.26 billion) and percentage of circulating supply (757.95%). This unlock is an extreme outlier, as it’s over 12 times larger than the next biggest unlock by value (ARB at $101.91 million) in May. This means that the release of AEVO tokens will increase the circulating supply nearly 8-fold.
  2. PYTH: While not as large in absolute dollar terms ($1.21 billion), the PYTH unlock on 5-20 will increase its circulating supply by 141.67%. This is the second-highest percentage increase after AEVO and could similarly impact PYTH’s price and liquidity.
  3. MEME: The MEME token unlock on 5-3 is notable for increasing its circulating supply by 31.92%, the third-highest percentage after AEVO and PYTH. At $141.83 million, it’s also the fourth-largest unlock by USD value.

How to Short in Anticipation of Token Unlocks

These biggest unlocks of tokens can have a significant impact if they are sold on the market, and it could create substantial downward pressure on their price. But the question remains, how to brace yourself or even profit from it?

How to Short AEVO?

If you believe that AEVO’s price will decrease due to the significant token unlock on May 15, you can consider shorting AEVO on MEXC. By selling AEVO tokens that you don’t own and repurchasing them at a lower price later, you can potentially profit from the price decline.

How to Short PYTH? 

With PYTH’s unlock of 141.67% of its circulating supply on May 20, you might want to consider shorting PYTH on MEXC. If you anticipate that the unlock will lead to increased selling pressure and a lower price, you can sell PYTH tokens short and buy them back at a lower price to realize a profit.

How to Short MEME?

MEME’s unlock of 31.92% of its circulating supply on May 3 could potentially lead to a price decrease. If you want to short MEME on MEXC, you can sell MEME tokens that you don’t own, with the expectation of buying them back at a lower price.

Token Unlocks Dates for Cryptocurrencies in May

When is DYDX going to unlock?

May 1: DYDX unlocks ~11.09% of float (70.67M), mainly for investors and community.

When is SUI going to unlock?

May 3: SUI unlocks 2.67% of float (40.50M).

When is APT going to unlock?

May 12: APT unlocks 2.65% of float (101.45M), mainly going to early contributors and investors.

When is AEVO going to unlock?

May 15: AEVO unlocks 757.95% of float (1,257.94M).

When is STRK going to unlock?

May 15: STRK unlocks 8.79% of float (80.64M) mainly for foundation and community grants.

When is PYTH going to unlock?

May 20: PYTH unlocks 141.67% of float (1,211.02M).

When is SUI expected to have a significant investor unlock?

May 31: SUI could have a significant investor unlock.

When is ARB going to unlock?

May 16 (5-16): ARB: $101.91M (3.49% of circulating supply)

When are APE and IMX going to unlock?

May 17 (5-17): APE: $19.97M (2.48% of circulating supply) IMX: $53.10M (1.75% of circulating supply)

When is ROSE going to unlock?

May 18 (5-18): ROSE: $16.15M (2.54% of circulating supply)

When is PIXEL going to unlock?

May 19 (5-19): PIXEL: $22.55M (7.05% of circulating supply)

When are AVAX and ID going to unlock?

May 22 (5-22): AVAX: $332.34M (2.52% of circulating supply)
ID: $13.28M (4.29% of circulating supply) 

When is YGG going to unlock? 

May 27 (5-27): YGG: $14.10M (4.53% of circulating supply)

When is OP going to unlock?

May 29 (5-29): OP: $60.40M (2.31% of circulating supply)

When is PRIME going to unlock? 

May 31 (5-31): PRIME: $27.06M (4.24% of circulating supply)

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