If a project holds that many tokens then it is difficult for me to trust them. This is not necessarily due to the fact that they might dump it in the future. Who knows that these tokens might actually be planned to be used for a newer project....
My reason for distrust come from the fact that the this kind of percentage holding is against the core philosophy of decentralization. Historically it has been shown that too much power concentration in one area will breed trouble for later.
This is one of the areas where I am not comfortable buying in the project even when I see that it has a sound team and technology. Another factor is the fear of these tokens being scammed away from the project. Even if the team is good but they are still susceptible to scams and phishing and hacking like all token holders. One percent tokens getting stolen might hurt the project but thirty percent might kill it.
I would not necessarily distrust it; the amount of tokens held by a single organization or individual could potentially cause havoc to the coin/token, but in most cases this won't happen. Steemit Inc. holds a huge amount of Steem, so I guess we are kind of in this situation here. Luckily it will take them 13 weeks to Power Down all of it at least.
So I can definitely trust such a project, but it will be a bit more difficult to get my trust compared to if this was not the situation.
If a project holds that many tokens then it is difficult for me to trust them. This is not necessarily due to the fact that they might dump it in the future. Who knows that these tokens might actually be planned to be used for a newer project....
My reason for distrust come from the fact that the this kind of percentage holding is against the core philosophy of decentralization. Historically it has been shown that too much power concentration in one area will breed trouble for later.
This is one of the areas where I am not comfortable buying in the project even when I see that it has a sound team and technology. Another factor is the fear of these tokens being scammed away from the project. Even if the team is good but they are still susceptible to scams and phishing and hacking like all token holders. One percent tokens getting stolen might hurt the project but thirty percent might kill it.
I would not necessarily distrust it; the amount of tokens held by a single organization or individual could potentially cause havoc to the coin/token, but in most cases this won't happen. Steemit Inc. holds a huge amount of Steem, so I guess we are kind of in this situation here. Luckily it will take them 13 weeks to Power Down all of it at least.
So I can definitely trust such a project, but it will be a bit more difficult to get my trust compared to if this was not the situation.
View this answer on Musing.io