What Is the Risk of a Large Token Release Coinciding with a Market Downturn?

A large token release (from vesting or lock-up expiry) during a market downturn exacerbates selling pressure. Investors are already fearful and selling, and the sudden influx of new supply from insiders or early investors floods the market, causing a sharp, rapid decline in price.

This timing risk can be catastrophic for the token's value.