How does vesting work for cryptocurrency holdings?

1 answers

• May 05, 2022 · 3 years ago
  Vesting is an important concept in the cryptocurrency world. It refers to the process of gradually releasing tokens or coins to investors over a certain period of time. The purpose of vesting is to incentivize long-term holding and prevent market volatility caused by sudden token dumps. By locking up tokens for a specific period, projects can ensure that investors have a vested interest in the success of the project. This encourages them to hold onto their tokens and contribute to the growth and development of the ecosystem. Vesting is often used in initial coin offerings (ICOs) and token sales to provide a fair distribution of tokens and align the interests of investors and project teams. It is an effective way to promote stability and long-term value creation in the cryptocurrency market.
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