Token Unlock is when tokens that were previously locked and untradable are finally opened for sale or transfer. This process is part of a strategy designed to keep prices stable and prevent mass sell-offs that could trigger sharp market volatility.
At the launch of a new crypto project, not all tokens are immediately available to the public. Some tokens are kept or “locked” for a certain period of time called the vesting period. During this period, the tokens are not accessible to anyone and cannot be bought, sold, or traded on the open market. The main purpose of token locking is to prevent early investors or project team members from selling their tokens as soon as they become available, which could lead to a significant price drop. The measure was taken to protect other investors and ensure the long-term stability of the project.