🧵 TOKEN VESTING - IMPORTANT KEY WHEN INVESTING IN CRYPTO
1️⃣What is Token Vesting? It is a mechanism for locking and unlocking tokens over time to control inflation & sell pressure. It directly affects the token price and the community's HOLD motivation.
2️⃣When the Token has unlocked 30-40% of the total supply • This is usually when the price peaks
• After that, it can adjust sharply
📉(Based on data from previous seasons)
=> Important to determine the take-profit/rebuy strategy!
3️⃣Unlocking time for Team & Investor
• Should be at least 6 months, ideally 1 year
📆• When unlocking, the price may drop sharply as the team & investors sell off
• But if the project is still building strongly, not selling can be an opportunity to buy at a good price!
4️⃣ Unlocking time for 100% Tokens
• Ideal: 3 - 5 years
• Avoid projects unlocking too quickly -> Sell-off
• But if it's too long, holders also lose motivation to follow the project
5️⃣ INVESTMENT STRATEGY
✅ SHOULD choose projects that have not unlocked many tokens for the team & investors
✅Projects with high vesting token amounts -> Stronger price-driving motivation because when unlocked, many tokens cannot be controlled by the team
🔥Understanding Token Vesting = Proactively controlling risks when investing!