PSA: Crypto.com's recent debacle is a stern reminder that the teams behind a project don't owe you anything and WILL screw you up for the chance of more money.

This is, honestly, a problem that is far too overlooked by most people investing in a "project"."I'm buying this token because this team has a great project and if the project succeeds I'm going to be rich af!".No, not really. IF the project succeeds AND the team decides to keep the token around and give some value back to it, THEN you might get some money out of it.But that's not a given at all: the team doesn't owe you anything. In fact, admitting they owe you something and they will give value back to the token would be admitting the token is a security, which is basically a death sentence regarding the whole US market.So how do you know the team will keep the token around and make sure it gains in value along with the project's success?You don't. However, a clear indicator is how much of the supply the team is holding. The higher percentage of the supply the team has, the more incentivized they are to keep the token price decent, especially if part of that supply is locked and only released every X months/years.

Submitted August 09, 2020 at 03:47PM