๐ Beyond watching the charts, this is something you should understand too: token allocation
Token allocation refers to which groups receive portions of the total supply and how much they receive. Typical groups include the team, investors, the foundation or treasury, ecosystem incentives, and airdrops.
The larger the share held by the team and investors, the greater the potential volume of concentrated selling later on, so be sure to consider the unlock schedule as well.
$ARB had an initial total supply of 10 billion tokens, of which 11.62% was distributed to users.
Understanding the principles can help you avoid some pitfalls, but it cannot replace risk management.
Token allocation refers to which groups receive portions of the total supply and how much they receive. Typical groups include the team, investors, the foundation or treasury, ecosystem incentives, and airdrops.
The larger the share held by the team and investors, the greater the potential volume of concentrated selling later on, so be sure to consider the unlock schedule as well.
$ARB had an initial total supply of 10 billion tokens, of which 11.62% was distributed to users.
Understanding the principles can help you avoid some pitfalls, but it cannot replace risk management.