The altcoin market is experiencing an early “crypto winter” as initial investors and founders of various projects sell off their tokens. According to a recent Bloomberg report, this decline can be attributed to a combination of factors, including the unlocking of tokens held by venture capitalists (VCs) and founders, as well as the selling pressure caused by the correlation between altcoins and major network tokens. Altcoin Market Hit By Token Unlock Wave As the crypto market recovered from the prolonged decline of two years ago, many projects’ tokens have reached their unlock dates this year. Per the report, venture capitalists and founders who received these tokens in exchange for investments or work contributions now have the opportunity to sell them. Out of the 138 tokens tracked by researcher TokenUnlocks, 120 have scheduled for this year, with a combined market value of approximately $58 billion. This anticipated selling from unlocking VCs has led to downside price reflexivity as non-VC holders attempt to front-run the selling pressure, often resulting in steep discounts to spot prices. Related Reading: Bitcoin Price Crashes Below $61 ..
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