Token founders are offering funds a kickback to bid coins on liquid market — particularly at token launch.
They will say “hey, if you buy 5m of our token, we will send you another 5m, so you get a 50% discount overall on the buy as long as you hold for n days”.
Makes artificial demand at TGE, inflates price for future foundation sales & locks up some of the already low float to make it even lower.
It’s like low float / high FDV on steroids. Sad state of affairs.
These are exactly the tenets we founded AVAX on. First movers are overrated, chains that actually work and can absorb the load to come are underrated. The winning system will be Avalanche, because it alone enables others to launch their own L1 chains that interoperate seamlessly.