Unlocks are scheduled releases of cryptos that were previously locked to prevent insiders from selling large amounts of tokens early.

Data from TokenUnlocks shows that nearly 25 million locked-up APT tokens are set to be released on Friday, including to early investors.

Research suggests that prices tend to drop around such events because the increase in supply surpasses the demand from investors.

The value of the native cryptocurrency of Aptos (APT) dropped by more than 16% in the past week while other major cryptocurrencies like bitcoin and ether saw gains. Aptos was the second-worst performer in the CoinDesk 20 Index, coming before only Uniswap's token.

Ahead of the release of 24.84 million APT tokens on April 12, TokenUnlocks reports that assets can only be moved 1-2 days after the event. The tokens will be distributed to core contributors, investors, community members, and the ecosystem development foundation.

Token unlocks are necessary because they prevent insiders from selling large quantities of tokens at once. The release of tokens often results in a drop in value due to increased supply compared to demand from investors. The APT tokens make up only 6% of the total supply but nearly double the daily trading volume, according to CoinGecko data.