Can a Token Be Considered Decentralized If a Large Portion Is Held by the Founders?

No, a large concentration of tokens in the hands of the founders or the issuing entity strongly suggests that the network is not sufficiently decentralized. This concentration implies that the founders retain significant control over the network's direction and success, satisfying the "efforts of others" prong of the Howey Test.

Regulators view the distribution of tokens as a practical measure of whether investors still rely on the central party's managerial efforts for their profit.