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 the Risk to a Project If the Vesting Schedule Is Too Short?
What Is a Whitepaper in the Context of an ICO and Why Is It Important?
What Is a “Lock-up Period” in the Context of Token Vesting?
What Are the Risks Associated with an Underfunded Exchange Insurance Pool?
How Does Double-Spending Fundamentally Undermine a Cryptocurrency’s Value Proposition?
What Are the Typical Risks Associated with a Traditional ICO That a Reverse ICO Mitigates?
Distinguish between Horizontal and Vertical Commonality
What Are ‘Cascading Liquidations’ and How Do They Relate to Flash Crashes?

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