Blockchain Glossary

Token Lockup

Published on August 28th, 2021

The term token lockup refers to a specific period of time in which cryptocurrency tokens cannot be transacted or traded. Typically, these lockups are used as a preventive strategy to maintain a stable long-term value of a particular asset.

This may help to prevent the holders of big bags to sell their tokens all at once in the market, which would likely cause prices to tank very quickly.