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carry

@web31314

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1. the team and founders: they have control over the project design, token economics and strategy, and can therefore opt for an early exit without necessarily ensuring the long-term sustainability of the project. 2. VCs: Early capital allocation is critical. If higher returns can be generated by investing in unsustainable short-term projects and exiting early, many VCs will prefer this option as well. 3. centralized exchanges: while their incentives should be aligned with their users, we often see CEXs extracting value against the interests of their users by listing tokens at excessive valuations, charging high listing fees, or listing low-quality assets. 4. Market Makers: Certain market makers may take advantage of their favorable position and the team's reliance on their services to negotiate terms that are extremely favorable to them. 5. KOLs: We often see undisclosed promotions, misleading information, and 'pull and smash' designed to harvest short-term value from their audience.
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In many cases, pursuing short-term values can significantly improve financial performance. However, the additional benefits of choosing to align with the long-term interests of the project may have limited impact, further encouraging participants to prioritize short-term gains. For example, let's say a founder holds tokens worth $10 million shortly after a Token Generation Event (TGE), subject to a 3-year lock-in. If the founder chooses to cash out early in an over-the-counter (OTC) transaction at a 60% discount, he or she will still have enough money to retire. Holding on to the tokens and waiting for the long-term return of Product Market Fit (PMF) to be realized carries a higher risk: the tokens may be worth less than $4 million after 3 years. Even if the project is successful, the founders may opt for a firm $4 million, as the risk/reward of waiting for a higher return is not attractive enough.
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