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What Risks Does a Team “Token Dump” Pose to an ICO Project?

A token dump occurs when a large volume of tokens held by the team or early investors is sold onto the market quickly. This sudden increase in supply drastically drives down the token's price, eroding investor confidence and potentially causing the project to fail.

It is a signal of the team prioritizing short-term profit over long-term development. It also damages the project's reputation.

What Is a Lock-up Period and How Does It Affect Short-Term Liquidity?
What Is the Role of a “Lock-up Period” for Pre-Sale Tokens in Managing Initial Volatility?
What Is ‘IV Crush’ and How Does It Create Risk for Options Buyers Who Pay a Wide Bid-Ask Spread?
What Is the Purpose of a Lock-up Period in an IPO or Token Sale?