Token unlocks, which release previously locked tokens into circulation, are known to increase market volatility and often lead to price declines. To mitigate the impact on the market, venture capitalists (VCs) frequently employ over-the-counter (OTC) deals and staggered sales strategies. These methods allow VCs to exit their positions in a controlled manner, avoiding sudden market crashes that could result from large-scale token sales.
Token Unlocks Increase Market Volatility, Prompt Strategic VC Exits
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