How to read a Token Distribution chart
Ever feel like some tokens just vanish after launch, or that only a few people own all of them?
Understanding a token distribution chart is your secret weapon to uncovering these hidden truths!
Imagine throwing a huge birthday party for your favorite new game, and everyone's excited about the cake!
A token distribution chart is exactly like seeing who gets what slice of that giant cake - some slices go to the chefs (the project team), some to the early party planners (investors), and some to the general guests (the public).
It visually breaks down how a project’s total tokens are initially spread out, showing you the percentages allocated to different groups.
But, it's easy to just glance at the pretty pie chart and miss the super important story it tells about potential selling pressure, thinking all slices are equal, or that everyone will hold onto their piece forever.
Therefore, a token distribution chart, combined with a vesting schedule (which tells you when those slices can actually be eaten or sold), is like having X-ray vision into a project's future stability.
For example, if a large percentage of tokens were all unlocked by a few early investors, it could create immense selling pressure.
Instead, seeing a well-spread distribution and staggered unlocks means less sudden supply shocks.
The big takeaway is this: if a few groups hold a massive chunk, we need to understand their unlock schedule to assess potential sell pressure.
Now, you’ll see beyond just percentages and truly grasp a project's power dynamics!💡
#Tokenomics #CryptoEducation #TokenDistribution - Disclaimer: Sharing knowledge and insights as part of learning and growing together. For educational purposes only, not financial advice.