# kaal:claim:3249860-009

**Claim.** To avoid a token price crash, escrow accounts holding unissued tokens should carry usage and access controls assuring investors that escrowed tokens will not be issued at a discount, with lockups or phased releases minimizing crash risk.

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

**Holds when.**

- issuers that retain unissued tokens in escrow after an ICO

**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. Lockups of escrowed tokens for a specified time period or phased releases can also help minimize the risks of token price crashes.

**From.** Wulf A. Kaal, *Crypto Economics - The Top 100 Token Models Compared* (2018), II.4 Monetary Policy, page 9

**Cite as.** Wulf A. Kaal, Crypto Economics - The Top 100 Token Models Compared (2018). SSRN: https://ssrn.com/abstract=3249860

**Verify.** sha256 of source PDF `72b13f11002ba26206cd53e74c324b913d1830c642bfa024da6bac0d3af3a7b0` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202018%20-%20Crypto%20Economics%20-%20The%20Top%20100%20Token%20Models%20Compared.pdf

**Failure mode.** escrow-release-price-crash  (family: valuation-and-pricing-failure)

**Topics.** tokenomics, economics

**Keywords.** escrow, token-supply, price-crash, lockups, token-design

**Related claims.**

- restates: https://wulfkaal.github.io/claims/3067615-010

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