Token Unlock
By Menno — 13 years in crypto, 3 bear markets survived, zero paid promotions
Last updated: March 2026
A token unlock is when previously locked tokens from a cryptocurrency project become available for trading, often increasing supply and creating sell pressure that can push prices down.
Token unlocks occur when tokens that were allocated to team members, investors, or advisors during a project's early stages become available for trading after a vesting period.
Most crypto projects allocate tokens to various groups with vesting schedules — meaning the tokens are locked and release gradually over months or years. When a large batch of tokens unlocks, those holders can sell for the first time, creating potential downward price pressure.
Why unlocks matter for investors: - Large unlocks increase circulating supply, which can dilute existing holders - Early investors and team members often have very low cost bases, making them likely sellers - The market often prices in known unlocks ahead of time, but the actual selling can still cause price drops
On Alpha Factory, Token Unlocks carry a 20% weight in the Altcoin Rules system — the second-highest weight after Risk Wave. A major upcoming unlock is a significant negative signal because it represents predictable sell pressure.
Always check a project's unlock schedule before investing. The Vesting Tracker tool on Alpha Factory helps you monitor these dates.
Related Tools on Alpha Factory
Related Terms
Altcoin Rules
Altcoin Rules is Alpha Factory's 8-indicator scoring system that evaluates whether conditions are favorable for buying an altcoin, combining Risk Wave, RSI, Fear & Greed, token unlocks, and more into a single composite score.
Vesting Schedule
A vesting schedule is a timeline that determines when allocated tokens gradually become available. Common in crypto projects for team, investor, and advisor allocations — typically lasting 1-4 years with monthly or quarterly unlocks.
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