risky

Founders Hold Massive Token Stakes — Concentration Risk in Crypto

I see that founders and issuers often hold enormous token positions — Vitalik with ETH, Binance's founder with BNB, the issuers of USDT with vast token reserves, and Satoshi with a huge BTC stash.

I view this as a structural concentration that can amplify price moves and governance power, so I treat projects with large founder/issuer holdings with extra caution.

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Analysis

High token concentration among creators and issuers raises centralization and market-risk concerns: large holders can dump into thin liquidity, control governance, or influence market sentiment. On-ch...

Recommendation

Watch distribution metrics and vesting schedules, diversify exposures, size positions to withstand potential sell pressure from large holders, and avoid investing based solely on narratives.

Disclaimer

The Analysis and recommendations provided are for informational purposes only. Any investment decisions should be made at your own risk. Past performance is not indicative of future results. Always conduct your own research and consider consulting with a financial advisor before making any investment decisions.

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