A lock-up period refers to a predetermined timeframe during which investors are prohibited from selling or trading their assets after a project’s token sale or initial coin offering (ICO). This period is designed to prevent early investors or insiders from quickly cashing out, thereby stabilizing the token’s value in the market.Typically, lock-up periods can last from several months to several years. During this time, the project team works towards building the platform and increasing its user base, aiming to boost the token’s value and credibility.Once the lock-up period ends, investors have the freedom to sell their tokens. This release can sometimes lead to volatility in the market as a sudden influx of tokens may occur, impacting price dynamics. Understanding lock-up periods is crucial for potential investors, as it impacts when they can realize returns on their investments and influences overall market behavior.