Many mistakenly believe that locked tokens mean devs cannot take profits. But in reality, there are a series of 'workarounds' that allow them to withdraw money without anyone noticing. Below are the 6 most common 'tricks' – holders need to know to avoid becoming the next victim.
1️⃣ Sell Tokens Not Allocated to the Team
Pools like marketing, partners, community, airdrop are often unlocked earlier.
Dev easily pushes to the market without anyone checking.
No audit, no transparency – who knows how much they sold?
2️⃣ Set Up Short Orders to Profit from Price Differences
Open a short position at a high price, dev profits when the price dumps – no need to sell real tokens.
This method is both 'anonymous' and not seen as dumping.
Can ask MM (market maker) for support to open orders if capital is insufficient.
3️⃣ Use Tokens as Collateral to Borrow Stablecoins
Locked tokens can still be used as collateral on lending platforms.
Borrow USDT, USDC and use or sell for real money.
When the unlock date comes, repaying the debt is all – very neat, no one suspects.
4️⃣ Raise Capital and... Remain Silent
Raise tens of millions of dollars, list tokens, then stop development.
Still operating on the surface, but no updates, no roadmap.
The ecosystem is desolate, investors are stuck. Just look at zkSync to understand!
5️⃣ Sell Discreetly Through OTC (Over-the-Counter)
Dev can push tokens through private transactions without affecting the floor price.
OTC buyers accept to hold and wait for unlock, while devs happily gather money first.
Besides team tokens, there are countless other 'shadow allocations' sold in this way.
6️⃣ Use DeFi to 'Liquidate' Profits
Locked tokens can still be used as collateral in DeFi protocols.
Borrow stablecoins, withdraw and use freely.
What if liquidation occurs? No problem, consider it a technical loss.
Typical case: the founder of Curve played this game.
In summary:
Locked tokens do not mean the team cannot withdraw money. The game is now much more sophisticated. Stay alert, as sometimes... what you see may not be the truth.
