The article discusses the impact of token distribution on the success of crypto projects, emphasizing the need for fair models to build community trust and reduce market manipulation risks. The case of Berachain's token launch, where over 35% of tokens were controlled by private investors leading to a 63% price drop, illustrates the risks of concentrated ownership. This situation reflects a broader issue within the crypto industry as projects face scrutiny for disproportionate VC allocations and inadequate airdrops for early adopters, underscoring the need for fair launch strategies like those used in Bitcoin's distribution.
The manner in which tokens are distributed significantly impacts a crypto project's success, influencing community trust, market manipulation risks, and overall credibility.
Recent events have highlighted the tension between venture capital-backed launches and community-oriented models in the crypto industry, needing resolution for continued momentum.
With over 35% of BERA's supply controlled by private investors, its price plummeted 63% post-launch, raising concerns about token ownership concentration.
Criticisms are not unique to Berachain; projects like Aptos and EigenLayer also face scrutiny over unfair token distribution to VCs and early adopters.
Collection
[
|
...
]