@joycegrote
If a project’s market cap strategy includes a "price stabilization fund," the size varies—usually 5%-15% of the total token supply or $1M-$10M in stablecoins/cryptos. The fund is used to intervene when: the token price drops over 20% in 24 hours (buying to support prices), there’s extreme sell pressure (absorbing excess supply), or liquidity is insufficient (providing market depth). Intervention details (e.g., fund usage limits, trigger conditions) are in the project’s whitepaper—transparent use builds trust; opaque operations may raise concerns about market manipulation.
0 reply
0 recast
0 reaction