Token Lockup

The term token lockup alludes to a specific period of time where cryptocurrency tokens can't be executed or traded. Ordinarily, these lockups are utilized as a preventive strategy to keep a stable long-term value of a particular asset. This might assist with preventing the holders of big bags to sell their tokens at the same time in the market, which would almost certainly make prices tank rapidly.
It is common to see gigantic sell-offs after Initial Coin Offerings (ICO) where early investors (or even the project's team) wind up selling their holdings right after the cryptocurrency raises a ruckus around town, causing enormous drops in price. So token lockups are utilized to stay away from this from occurring and they carry an extra level of confidence to the expected participants of a token sale.
Token lockups may likewise be called vesting periods. These are much of the time set as a couple of years after the send off of a cryptocurrency. For instance, assuming a startup makes a cryptocurrency and dispatches it through an ICO, they might characterize a lockup period for the team of two years, implying that no team member will actually want to access their tokens before the lockup period closes. This brings a positive sentiment about the project and the team as it will probably keep them persuaded to zero in on long-term work, without stressing over the market value of their token.
Worth taking note of locked up tokens (or coins) are not part of the circulating supply and thusly are not viewed as in specialized analysis performed by chartists and traders.