What Is the Role of a “Lock-up Period” for Pre-Sale Tokens in Managing Initial Volatility?

A lock-up period prevents early investors, team members, and advisors from immediately selling their large token allocations after the public launch. This mechanism is crucial for preventing a sudden, massive supply increase, known as a "dump," which would crash the token price.

By staggering the release of these tokens, the lock-up period helps ensure a more stable and orderly secondary market for the token.