Cryptocurrency Development Teams Owe You Nothing

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Development teams behind cryptocurrencies have no legal obligations to answer any of your questions, nor are they under any obligations to show concern about the price of the cryptocurrency. They are not the same as directors of publicly listed companies whereby they are legally required to file reports and answer shareholder questions.

If you are frustrated with the price of your cryptocurrency there is not much you can do other than stay patient. After all, a lot of the development team of these projects have ‘skin’ in the game with regards to holding the cryptocurrency themselves. This point becomes somewhat contentious as some argue that management holding the cryptocurrency themselves is ‘centralization’ while that is true in some respects, ultimately I would prefer to have management incentivized along the same lines as investors of cryptocurrency. In addition I believe management use their holdings to incentivize adoption of their cryptocurrency and invest it back into the system in the form of adding new developers and programmers.

Could management dump all their holdings and cash out? Yes, however until they have done so they are incentivized to raise the price as high as possible.There has already been one example of Management cashing out with Litecoin’s Charlie Lee cashing out late last year. Despite Lee exiting, Litecoin has continued to perform relatively well.

The ethics in cashing out is still a grey area for most investors. However as long as the market remains unregulated, management are under no obligation to report their actions pertaining to acquisition and sale of cryptocurrency. Next time you are disenfranchised with the development team behind the crypto project you invested in, remember they owe you nothing.

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