# kaal:claim:3067615-010

**Claim.** To avoid a token price crash, token escrow accounts should provide usage and access controls that assure investors escrowed tokens will not be issued at a discount, and lockups or phased releases of escrowed tokens further minimize crash risk.

**Type.** design  **Support.** argued

**Holds when.**

- issuers holding unissued tokens in escrow for future funding

**Source quote.**

> To avoid a token price crash, token escrow accounts should provide usage and access controls that assure investors that escrowed tokens will not be issued at a discount.

**From.** Wulf A. Kaal, Marco Dell'Erba, *Initial Coin Offerings Emerging Practices, Risk Factors, and Red Flags* (2017), II.3 Crypto Economics, page 10

**Cite as.** Wulf A. Kaal, Marco Dell'Erba, Initial Coin Offerings Emerging Practices, Risk Factors, and Red Flags (2017). SSRN: https://ssrn.com/abstract=3067615

**Verify.** sha256 of source PDF `164ce15b9eb1e8847ebcb073f5b23a96b4974ad0308d77469a9455d4a1ebeb38` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20and%20Dell%27Erba%20-%202017%20-%20Initial%20Coin%20Offerings%20Emerging%20Practices%2C%20Risk%20Factors%2C%20and%20Red%20Flags.pdf

**Topics.** tokenomics, economics

**Keywords.** escrow, token-lockup, price-crash, investor-protection, crypto-economics

**Related claims.**

- restated_by: https://wulfkaal.github.io/claims/3249860-009

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.