Vesting Period

A period when tokens are restricted from usage to protect the cryptocurrency, usually after an Initial Coin Offering (ICO).

A vesting period, also known as token lockup period, refers to a specific period where the developers of a cryptocurrency ‘lock’ tokens so that users cannot trade them. This period is usually brief but may be long. However, the objective of this lockup is to put a check on users selling off their tokens immediately after obtaining them. Such a situation would drive down the prices of the cryptocurrency and it will take extra effort to get these prices to rise.

Using vesting periods is a reliable safeguard against the possibility of a tanking cryptocurrency. Thus, due to the imposed period of waiting, the crypto asset is given sufficient time to grow in value.

Previous term

Verification Code

Read More

Next term

Virgin Bitcoin

Read More