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What Is the Risk of a High Initial Circulating Supply?

A high initial circulating supply can lead to a lower initial price per token, making it harder to generate excitement and initial funding. More importantly, it increases the risk of immediate sell-off pressure, as a larger portion of the supply is immediately liquid.

This can lead to significant price volatility and a lower valuation after the initial hype subsides.

What Is the Difference between ‘Circulating Supply’ and ‘Total Supply’?
What Is the Significance of the Initial Circulating Supply in a Token Launch?
How Does Airdropping Tokens Affect Initial Circulating Supply?
How Can a DAO Use a Token Buyback Program to Counteract Vesting-Related Sell Pressure?