Glossary
Token Unlock
A scheduled release of previously locked tokens into circulation, often sold by early investors and the team.
A token unlock is when tokens that were locked at launch become transferable. Teams and investors usually hold the largest locked allocations, so an unlock adds sellable supply on a known date.
The effect is predictable in direction and difficult in size. If a significant share of supply unlocks at once and the daily volume does not absorb it, the price has to fall for the supply to clear.
Unlocks are published in advance, so they belong in your decision before the event rather than after it. Holding through a large unlock is a position you are choosing, not one you can attribute to the market.
Related terms
Airdrop
Free tokens distributed to wallet addresses, usually to reward early users of a protocol.
AMM
Automated Market Maker — a protocol that prices assets with a formula instead of an order book.
APR vs APY
APR is the yearly rate without compounding; APY includes compounding and is always higher.
ATH
All-Time High — the highest price an asset has ever traded at.
Bear Market
A prolonged decline, conventionally 20% or more from recent highs.
Bull Market
A prolonged rise driven by new demand, easy credit and rising confidence.