What Is the Risk of “Oversubscription” in a Launchpad Sale?

Oversubscription occurs when the total demand for the IEO tokens significantly exceeds the available supply. The risk for participants is that they receive a much smaller allocation than they intended or desired.

This can lead to frustration and a rapid sell-off by those who receive a small, uneconomical allocation. The high demand, however, is generally a positive signal for the token's future performance.