Lockup

A Lockup refers to a period during which an investor or stakeholder is restricted from selling or transferring their assets, typically after a token sale or initial coin offering (ICO).

How It Works

Lockups are often implemented to prevent market manipulation or excessive volatility immediately following an asset’s release. During this time, participants cannot access their funds, ensuring stability in the market.

Purpose of Lockup

Lockups help build trust by ensuring that early investors, team members, and stakeholders don’t sell off large amounts of tokens right away, leading to a more gradual and stable market growth.