Definition ∞ Early investors are individuals or entities who provide capital to a cryptocurrency project during its initial development phases. They acquire tokens or equity at a preferential valuation, often before public sale. Their support is crucial for project funding and initial momentum. These participants typically accept higher risk for the potential of substantial future returns.
Context ∞ The influence of early investors on token distribution and project governance remains a frequently discussed topic in the digital asset space. Concerns sometimes arise regarding potential market dominance or concentrated holdings by these initial supporters. Projects often implement vesting schedules to manage token release and prevent immediate sell-offs. The long-term alignment of early investors with project goals is a key indicator for observers.
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