Why Is Transparency about Token Allocation Essential for ICO Legitimacy?
Transparency in token allocation allows investors to assess potential risks, such as high concentration of tokens among the team or early investors. It helps prevent market manipulation and provides a clear picture of the project's decentralization plan.
Lack of clarity suggests the team has something to hide.
Glossar
Transparency
Disclosure ⎊ In cryptocurrency, options trading, and financial derivatives, disclosure transcends mere reporting; it represents a proactive commitment to revealing material information that could influence market participants' decisions.
Token Allocation
Distribution ⎊ Token allocation, within cryptocurrency and derivatives, represents the strategic apportionment of digital assets or rights to various participants, often determined by pre-defined rules or algorithmic mechanisms.