Binance has integrated token unlocking and vesting data into its platform in a team-up with price resource CoinMarketCap, in a move that could change the way everyday crypto traders evaluate tokens on the world’s top cryptocurrency exchange by volume.
Binance acquired CoinMarketCap in April 2020, although the two entities have operated independently.
Token vesting is the process of gradually distributing, or unlocking, a virtual token for stakeholders such as investors and creators over a predetermined time period.
When crypto projects like blockchains and gaming projects launch a token, they typically lock up certain token allocations for years to come, in part to avoid overloading the market. Such moves also provide incentive for developers and contributors to continue working, since the strength of a project (or demand for it) can impact a token’s price.
Proponents of token unlocks and vesting schedules say these processes increase predictability and transparency in the digital asset market. And there have been numerous instances in the past of large token unlocks impacting the market as holders weigh the potential impact.
A Binance spokesperson said the integration is designed to help inform users.
“Token unlocks can have an impact on prices, so having this information at one's fingertips is crucial,” the representative told Decrypt. “This new feature helps our users stay ahead by providing clear, accessible data to optimize their strategies and make better decisions.”
The feature displays each token’s circulating supply, in addition to its unlocked and locked quantities and percentages. The platform also includes data on upcoming scheduled unlocks, with countdown timers for each token distribution.
The feature is already available on the Binance website and will soon be introduced on Binance’s app as well.