Essential Insights
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Significant Losses for Locked Tokens: Investors with locked tokens experienced an average value drop of 50% from OTC valuations between May 2024 and April 2025, affecting nearly all tracked projects.
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Underperformance Compared to Bitcoin: Unlike Bitcoin, which gained 45%, locked token investors faced an additional 31% in opportunity costs, leading to an overall value loss of approximately 82.8% compared to BTC.
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Heaviest Declines Among Certain Projects: Notable project declines include Scroll (SCR) at -85%, Blast (BLAST) at -88%, and Eigenlayer (EIGEN) at -75%, highlighting widespread token devaluation.
- Impending Market Pressures: With over $40 billion in locked altcoins set to be released, current selling prices are at a staggering 50% discount, exacerbating losses for investors still holding unreleased tokens.
Locked Token Holders Face 50% Losses as $40B in Altcoins Set to Unlock
Locked token holders are grappling with significant losses. According to recent data from STIX founder Taran Sabharwal, many investors experienced a decline of about 50% from May 2024 to April 2025. These losses come as market conditions shift, fundamentally altering the landscape of altcoins.
Despite the anticipation of future gains, many investors missed opportunities to sell at higher prices last year. Sabharwal’s analysis reveals that major tokens have seen widespread devaluation. Projects like Scroll (SCR) and Blast (BLAST) have plummeted by 85% and 88% respectively. Eigenlayer (EIGEN) followed suit, losing 75%, while ZKsync (ZK) and Wormhole (W) dropped by 64% and 50%. Only Jito bucked the trend, gaining 75%.
Compared to the broader market, locked token investors suffered even more. The general cryptocurrency market shrank by 40.7%, while locked assets faced an average loss of 50%. Furthermore, when considering liquidity, these investors lost an additional 31% in opportunity costs. In contrast, Bitcoin (BTC) increased in value by 45%.
With over $40 billion in locked altcoins set to unlock soon, sellers could see further declines. Currently, a dollar invested in BTC a year ago is worth approximately $1.45. Conversely, that same dollar in unreleased coins is now only valued at $0.50, and with the current OTC market discount, it could drop to $0.25. This results in a staggering total loss of around 82.8% when compared to Bitcoin, and 75% in USD terms.
Locking tokens often involves specific vesting schedules, which prevent immediate selling. As a result, holders remain vulnerable to market fluctuations during this period. While some projects recover, many continue to struggle in a rapidly evolving market.
Investors must navigate these challenges carefully as they await the release of their locked assets. The current climate offers lessons about the unpredictable nature of cryptocurrency investments and the importance of agile decision-making in this volatile space.
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Disclaimer
This content is for informational and entertainment purposes only and does not constitute financial or investment advice. Cryptocurrency is highly speculative and carries significant risk, including the potential loss of your entire investment. Do not make financial decisions based on this information. Consult a licensed financial advisor before investing. This site does not offer, sell, or advise on cryptocurrency, securities or other regulated financial products in compliance with SEC and applicable laws. Please do your own research and seek professional advise.
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