What Are the Risks of Investing in an ICO with an Overly Aggressive Token Distribution Model?

An overly aggressive model, where a large supply of tokens is immediately available, can lead to significant sell pressure shortly after the ICO. This rapid inflation of circulating supply can severely depress the token price, harming early investors.

It suggests the team prioritizes quick funding over sustainable market growth and project longevity.

What Is a Vesting Schedule and Why Is It Important for an ICO Team’s Tokens?
How Does a Vesting Schedule Mitigate the Risk of a Rug Pull?
Why Is an Anonymous Development Team a Major Red Flag for Investors?
What Is the Risk of Team Members Selling Tokens after a Lock-up Expires?
What Is the Difference between Investing in Cryptocurrencies and Investing in Crypto-Based Derivatives?
What Is the Long-Term Risk of a Protocol with an Aggressive Token Burn Rate?
How Can a DAO Use a Token Buyback Program to Counteract Vesting-Related Sell Pressure?
How Can Investors Verify the Identity of an ICO Team?

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