Should team members hold too much of tokens?

[MrSpasybo]

So far, I count a project as potential when the team only holds no more than 15% of the total supply, because if the team members hold too many tokens, they can sell off, causing the token price to drop as soon as the bull run starts.

And we see that risk most evident in the case of XRP & Ripple. Ripple holds 62% of the total supply, equivalent to 62 billion XRP tokens, the fact that they lock 55 billion XRP and release 1 billion XRP per month also does not help the controversy associated with the token sale of the team members. As a result, the XRP community is asking the team to burn 48 billion XRP that the team holds.

XRP is not a true cryptocurrency, they are centrally operated and easily manipulated by Ripple itself.

In your opinion, what percentage of the project's total token supply should the team hold? Some teams of newly emerging DeFi projects are not even owning project token, is that the solution and current trends?

[monig18]

I totally agree with You sir.There should be a fixed percentage for the team for the fixed period.Also there should be ban for sale of  token team for a fixed period and then release token gradually.In this way project can survive.

[Gubre]

In my opinion the team holding more than half of the total supply of coins is bad in the eyes of investors this will always create a doubt for the team and so the success of the project is near to doom. If the team want to hold some from the total supply of their coins I think 1% is enough and an the unsold must be burn. I can say that ripple is just lucky maybe because of being centralized.

[MrSpasybo]

In my opinion the team holding more than half of the total supply of coins is bad in the eyes of investors this will always create a doubt for the team and so the success of the project is near to doom. If the team want to hold some from the total supply of their coins I think 1% is enough and an the unsold must be burn. I can say that ripple is just lucky maybe because of being centralized.

I really hope that the XRP community will succeed in asking the Ripple team to burn 48B XRP - a $24B asset. This will give XRP tokens scarcity and freedom in price movements.

I am afraid that 1% will not motivate the team to work & develop the project ^^

[I-Bit]

In investing, we should not only consider the quantity of the tokens but also the quality. We may not need to have too many tokens. But several tokens with good liquidity, market cap, and also trading volume are enough. Moreover, those that are good for trading or investing.

[Cryptoz]

It depends on the project itself. In my personal view, it is no problem if the team members have a higher number of tokens since they are the owners. The most important thing is they can keep the value of the token be always good. Don't dump the token price with their tokens. As they have a bigger number of tokens, those team members must promise to never sell massively the tokens at one time.

[Lorix]

Those teams should accept that all of them are constantly working hard to improve the project. Because the project does not improve by itself. The project improves if the team is committed. If the team does not keep the promise then the project is damaged. I think you need to know the team well before investing.

[TomPluz]

I agree with you. XRP has become like a classic example of a team whose members are holding the majority of the coins or tokens and when anybody of them will decide to sell some of them the price of the said asset can easily tumble, resulting into small holders to question the overall viability of the whole thing. Holding coins or tokens can mean power especially if the said assets are already exchangeable. When a project has a team holding more than 15% or even 10% of the total possible supply then that can be a red flag.

[Fenix]

I do not see any significant problems from the fact that the project team has more than 15 percent of its tokens.  After all, this is only the possibility of abuse of their rights by the team.  Of course, it would be better if mechanisms were in place against possible abuse.  Ripple really has strict centralization, but this does not prevent it from being very popular.  The token team, if desired, will find an opportunity for abuse.  Many DeFi project teams provide their token holders with the ability to fully manage the development of the project.  This is a much higher degree of trust and openness, and people will trust such projects more.  Cryptocurrency continues to evolve in this way.

[masterrex]

From the investor's point of view, It was a good solution, if the 48Billion XRP will be burn. But I believe the team will not do that because if that happens $24 Billion worth of XRP will be vaporized and XRP will be removed from the Top 3 ranking base on MarketCap for me the best solution to that problem is to dump the XRP coin and jump to another project that was not centralized.   

[vitek146]

Important  information of The Spark Token Distribution for XRP holders:

The claim formula below sets out the amount of Spark that an individual XRP holder can expect to receive in total.

Spark  claimable=XRP ownedXRP total - XRP Ripple - XRP NPE ∗45 Bn,

where the variables are:

Spark claimable: The amount of Spark claimable by an XRP address.

XRP owned: The amount of XRP in the XRP address at the time of the snapshot.

XRP total: The total amount of XRP in existence at the snapshot date.

XRP Ripple: The XRP held in Ripple related accounts at the time of the snapshot including escrowed balances.

XRP NPE: The XRP held by non-participating exchanges at the snapshot date.

[MrSpasybo]

From the investor's point of view, It was a good solution, if the 48Billion XRP will be burn. But I believe the team will not do that because if that happens $24 Billion worth of XRP will be vaporized and XRP will be removed from the Top 3 ranking base on MarketCap for me the best solution to that problem is to dump the XRP coin and jump to another project that was not centralized.

In case Ripple burns 48 billion XRP, the total supply of XRP in the market will decrease, buying pressure increases and holders of XRP may demand a higher price => The value of each remaining XRP token will increase. So if Ripple burns 48 billion XRP, they share $24B in their total assets and gave up their right to manipulate the XRP market.
However, there is no guarantee that $24B will be transferred intact into all remaining XRP tokens, when the market is always highly volatile. The correction phase will likely make XRP lose its top3 position.

[Piku]

Currently some of my fellow investors have invested much more in the cryptocurrency market. Everyone in my office has been able to invest in good cryptocurrencies. They want to benefit. This week someone bought and held $15k xrp. I think it will be beneficial. But it has suffered as a result of falling prices this week.

[Andruha1993]

I think the project team should hold a very small percentage of tokens. You rightly said that if they have a lot of tokens, then they can sell everything and the price of the coin may fall accordingly.

[tsakf]

I think the project team should hold a very small percentage of tokens. You rightly said that if they have a lot of tokens, then they can sell everything and the price of the coin may fall accordingly.

I think that there is not a problem, for the team, having the majority of tokens, because right now, they cannot be sold, in quantity. I don't think that there is a buyer. In another thread, in-forum use, will increase, the value, because, it will increase the usability.