What Are Token Unlocks?
Token unlocks are one of the most-watched events in crypto. Here's what they are, why projects use them, and how they can move a token's price.
A token unlock is a scheduled release of previously locked cryptocurrency into circulation. When a new crypto project launches, a large share of its total supply is usually held back — locked — and released gradually over months or years. Each scheduled release is a token unlock.
Why are tokens locked in the first place?
At launch, tokens are typically allocated to different groups: the founding team, early investors, advisors, the ecosystem/treasury, and the community. If everyone could sell their entire allocation on day one, the price would likely collapse. To prevent that — and to keep insiders committed for the long term — those allocations are locked and released on a published vesting schedule.
Cliff unlocks vs linear (vesting) unlocks
- Cliff unlock — a large batch of tokens is released all at once on a specific date (the "cliff"). These are the unlocks traders watch most closely, because they're a sudden jump in supply.
- Linear / vesting unlock — tokens are released gradually (for example daily or monthly) over a set period. The supply increase is smoother and usually less of a shock to the market.
How token unlocks can affect price
An unlock increases the circulating supply. If demand stays roughly the same while supply rises, basic supply and demand can push the price down — particularly for large cliff unlocks, where early investors sitting on gains may take profit.
That said, unlocks don't always dump the price. The impact depends on:
- The size of the unlock relative to the current circulating supply (a 20% jump matters far more than a 0.5% one).
- Overall market demand and sentiment at the time.
- Whether the unlock is already "priced in" — markets often anticipate well-known unlock dates in advance.
- Who receives the tokens and whether they intend to sell or hold.
How to track and prepare for token unlocks
The key figures to check for any upcoming unlock are the date, the amount of tokens, and the percentage of circulating (or total) supply it represents. Large, high-percentage cliff unlocks are worth extra attention.
See upcoming token unlocks live
CryptoFactory's crypto event calendar lists upcoming token unlocks — with the date, amount and impact level — alongside listings, mainnet upgrades and macro events like CPI and FOMC.
Open the Crypto Event Calendar →Frequently asked questions
What is a token unlock?
A scheduled release of previously locked crypto into circulation, following a project's vesting schedule.
Do token unlocks make the price go down?
Not always — but large cliff unlocks can add selling pressure. It depends on the unlock size versus circulating supply, demand, and whether it's already priced in.
What is a cliff unlock?
A large batch of tokens released all at once on one date, rather than gradually.
Where can I see upcoming token unlocks?
On the CryptoFactory event calendar, colour-coded by expected impact.