Token distribution: why is it important?

[hotlimbo]

Hi guys,

When looking at Alt Coins to invest in I have seen in the past some people emphasize the need to look at token distribution.
What are the salient points to look out for? Why is this important?

TIA

[1715306723]

1715306723

[1715306723]

1715306723

[1715306723]

1715306723

[Dullmartini]

Is the distribution being done fairly and widely is important. You don’t want a few whales to buy the entire offering and be able to control the price.

[Drnice]

If the tokens are not distributed, the investors will have a full control over the token price in the market, which means the time of the token existence lays on their hands. But when the tokens are distributed, it cannot be controlled by those who holds a large quantity of the token.

[JanEmilDK]

I think thus Youtube give a good explanation
https://www.youtube.com/watch?v=J-Vjgx75GXQ&t=325s

Intro from youtube
In the first episode of "the bit," FundStrat Global Advisor co-founder Tom Lee explains different methodologies for valuing bitcoin. Lee shares his short-term and long-term bitcoin price targets based on these valuation methods. According to Tom Lee, 94% of the variation in the price of bitcoin is explained using their model employing Metcalfe’s Law. Metcalfe’s law says the value of a network is proportional to the square of the number of users on the network. Based on this model, Lee expects the value of bitcoin to be $6,000 by the middle of 2018. FundStrat uses a different method to come up with its long-term price target. According to Lee it is conservative to estimate that bitcoin and other cryptocurrencies would represent 5% of the money parked in gold. Based on FundStrat’s assumptions this would value bitcoin at $25,000 by 2022.

[Gaius Cryptus Tradius]

I think interesting is often that the team has reserved too much than they ever need for development.

[zoro katana]

In my opinion, that is the important thing, because we must know the number of tokens that are distributed, it concerns the value of the token in the future when traded in the exchanger, the basic principle of buying and selling, there is a demand there is an offer, by knowing the number of tokens available , investors can certainly know and play a role in the ups and downs of the token value as an investment, so investors can predict this future project will be good or not to be developed and joined in it

[kindbtc]

yes, I think total supply and circulating supply is important, if the circulating supply is low, there are more chances for the price to go up. just basic supply and demand theory.

[pprun]

According to my experience for searching a campaign I noticed that there are a lot of campaigns every day. Every campaign have a limit supply, limit source. But few of them have a big counts of tokens that are potential in the future events. Tokens distribution is required know for the ccampaign so that you can choose what is best.

[Diablesfunis]

Hi guys,

When looking at Alt Coins to invest in I have seen in the past some people emphasize the need to look at token distribution.
What are the salient points to look out for? Why is this important?

TIA

If only a few people hold the majority of the token then it's easy for them to manipulate the price on the market but if there are a lot of holder then the price will be determined by the supply and demand, it's very important to avoid market manipulation.

[KillyGon]

Hi guys,

When looking at Alt Coins to invest in I have seen in the past some people emphasize the need to look at token distribution.
What are the salient points to look out for? Why is this important?

TIA

total suply token or token distribution very important
because can affect the price in the market exchanger, if the distribution of coins is uneven, then the owner of a lot of coins can control the price, dump and pump is easy

[Jraf95]

Is the distribution being done fairly and widely is important. You don’t want a few whales to buy the entire offering and be able to control the price.
[/quote
If we talk about token distribution it is very important so that we have our own token sell and buy some in trading market specialy distrubution of token is the most awaited part in ico cause we all know we join ICO for the sake of helping the ico and have some earnings also. In the industry of organization we must put some couragement so that people will help in promoting some product so by the rule we do follow as they manage their ratings to us.