When the rug gets pulled out from under your feet
Recently, we have observed competing projects having serious issues with price stability. In the last few months, many millions of tokens have changed hands in some competing projects, completely destroying their price. Unfortunately, this might not even be the end of it.
While we generally want to avoid making very public posts naming other projects, some of these examples are especially painful to watch.
This is a big problem with many ICO's and cryptocurrency projects. The projects often do not have any defined rules as to how tokens can be distributed and what the company behind the token is allowed to do. Some bigger projects even have investors that hold 50% of the total supply or more. This is obviously a recipe for disaster and won't benefit the general investor nor the project itself.
When the price pops, these projects go from huge market caps down to almost nothing. Many people that believed in these projects lose more than they can afford to. People get hurt. Projects need to consider how the investor and the community can be protected. How do you make a sale that works out long-term?
How the foundation protects itself, the investor and the community
The Unigrid Foundation and the Unigrid token in particular has a small supply that is spread out among our community members and early token holders. This adds up to around 4% of the total planned 150 million supply. Furthermore, the charter of the foundation prohibits the board (or board members) to take actions that would be detrimental to the network or the value of the Unigrid token. To prevent a situation where a lot of tokens outflow from the same investor or entity, we intentionally limit the amount that can be bought up by a single investor.
While The Ungrid Foundation is limiting the investment amount per entity, we also employ long-term thinking and try to consider how our actions influence the market and the network long-term. Will our decisions benefit the network and token? We may not always make the right decision - what you can be sure of is that we will try.