Is Token Locking a Beneficial Strategy for Crypto Projects?
Token locking has become a common practice in the crypto market but what does it actually entail? Essentially, it’s a measure to restrict the transfer or sale of tokens for a specific period. It’s particularly relevant to initiatives like DoubleZero, which has stated that all of their 2Z tokens, including the ones held by team members and early investors, will be locked. This helps to nurture long-term trust among investors and stabilizes the overall market.
What Purpose Does Token Locking Serve?
One of the most crucial roles of token locking is market stability. If there are fewer tokens circulating, the risk of dramatic price swings is also minimized. It can also foster investor confidence when they witness that the developers and…
