ILO Tokenomics Analysis  : Team Tokens / Dev. Wallet

What does Team Tokens/ Dev. Wallet Mean?


Wallet refers to the tokens at the initiative of the team making the project. The team conducts marketing activities using this piece that it has allocated for itself. It covers the costs of the team. The other part remains as profit for the team.

One of the first things we look at about a presale project is Tokenomics. Because it is important to know in what proportions and for what purpose the total supply will be used.

It is also very important to examine the amount reserved for presale, the parts reserved for the liquidity pool. We will examine the team token/ dev. wallet section.

ILO Tokenomics Analysis  : Team Tokens / Dev. Wallet

One of the first areas we look at when making Tokenomics is Developer Wallet/Team tokens. Because immediately after a newborn coin is listed, team tokens can be sold and liquidity pool can be completely drained (rug pull).

Unfortunately, many participating in presales have had this experience.

Because of these experiences, investors pay attention to the size of dev. wallet when investing in a new coin. Tokens in the hands of unfair teams are a great danger to investors.

On the other hand, there is the other side of the issue. Some projects, aware of this sensitivity of investors, either do not get any team tokens or they get very little. Thus, they try to give confidence to the investor in the name of the team.

In this case, after the coin is listed, the motivation of the teams to continue their projects decreases. They don’t take much effort to raise their coins. They don’t do marketing. Maybe, Team may not have any resources left to do marketing.

You may be interested 👉 Liquidity Problem in New Coin / Tokens at Unicrypt Presales (ILOs)

Investors need to consider both of these situations. So which situation works better?

What Should Be the Dev. Wallet/Team token Ratio?

I have seen that projects that are very small or have no Dev. Wallet usually do not develop. I prefer a team that will continue to work for the coin after the presale.

We should evaluate meme coins and project-based coins differently.

Having a certain amount of wallet will strengthen the hand of the team that wants to power the coin.

The critical point here is whether you can trust the team. And the team needs to transparently explain to their investors how to use the Wallet.

In addition, it would be good that team tokens are locked for a certain period of time.



Leave a Reply