- Concentrated token distribution in the hands of a few entities can be a red flag. It raises concerns about market manipulation and centralization, which could negatively impact token price and project trust.
- Also, be wary of distribution models that heavily favor founders or early investors at the expense of broader community participation. This could lead to imbalances and reduced incentives for new investors.
In assessing token distribution, what red flags should I be aware of in 'Tokenomics'?
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