Investors Crying Over Locked Tokens: 50% Losses Loom as $40B in Altcoins Ready to Unlock

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Ah, the sweet joy of investing! As if it wasn’t bad enough to deal with the wild ups and downs of the crypto world, now we have locked tokens, those delightful little treasures that turn into nightmares. Thanks to Taran Sabharwal, the brilliant mind behind STIX, we know that investors holding onto these locked tokens have been facing rather… shall we say, *memorable* losses over the past year. 🎭

From May 2024 to April 2025, the drop in value from OTC valuations to current market prices has been nothing short of tragic. On average, the fall is about 50%. Yes, you read that right – half of your investment, *gone* faster than a magician’s rabbit. 🐇💨

The Tragic Fate of Locked Tokens: A Comedy of Errors

According to Sabharwal, many investors found themselves stuck in the past, missing out on golden opportunities to sell at double today’s prices in 2024. But no, they held on, thinking things would turn around. Spoiler alert: they didn’t. With the market in a perpetual state of chaos and volatility, token values have been plummeting faster than a lead balloon. 🎈

Some tokens fared better than others, but not by much. Scroll (SCR) and Blast (BLAST) were hit the hardest, with drops of 85% and 88%, respectively. Ouch! 😱 Meanwhile, Eigenlayer (EIGEN) saw a 75% decline, and other tokens like ZKsync (ZK), Wormhole (W), and io.net (IO) were not spared either, with drops ranging from 48% to 64%. The only bright spot? Jito – a rare success story, with a 75% increase. So, congratulations, Jito holders! You’re the exception that proves the rule. 🎉

So, how does this compare to the broader crypto market? Well, not well. The broader market dropped an average of 40.7% during the same period, but locked tokens? They took a *heavier* hit, losing about 20% more on average. It’s like being the last one picked for the team… and then getting benched. 🏅

More Tears Ahead: The Woes of Opportunity Cost

But wait, there’s more! When you factor in the opportunity cost of liquidity – oh, it gets even worse. Investors who held onto their locked tokens lost an additional 31% compared to Bitcoin (BTC), which, despite everything, gained 45%. Talk about a missed opportunity. If you had put your money into BTC instead, it would now be worth $1.45 for every dollar you invested a year ago. Meanwhile, your locked token would be worth about $0.50, and with current OTC market discounts, it would sell for just $0.25. So, enjoy that 82.8% loss compared to BTC. 🎢

In other words, those lucky BTC holders are sipping margaritas on the beach, while you’re stuck trying to sell your locked tokens at a discount that would make even the most seasoned bargain hunter cringe. 🍹

And here’s a fun little tidbit: many of these cryptocurrencies are nearing the end of their lock-up periods. Great news, right? Except, the discounts are lower now, thanks to shorter vesting periods. So, if you were hoping to get a nice payout soon, you might have to wait just a bit longer. ⏳

Locked tokens, folks, are like a bad relationship: long-term commitments with no immediate rewards and plenty of pain along the way. All you can do is hope that the market changes, or that someone swoops in with an offer you can’t refuse. But until then, enjoy the ride – it’s going to be a bumpy one! 🎢

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2025-04-26 20:25