# kaal:claim:4015908-004

**Claim.** ICOs that allowed their token to trade before the underlying product existed, at least in beta, created significant risk for investors because the product might never go live and the token could lose its value entirely.

**Type.** failure  **Support.** argued

**Holds when.**

- token trading opens before a working or beta product exists

**Source quote.**

> ICOs that allowed their token to trade before the underlying product was built, at least in a beta version, create significant risk factors for the investors as the product may not go live at all and the token may lose its value entirely.

**From.** Wulf A. Kaal, *Fair Token Launch* (2022), II.2 Risk Factors, page 5

**Cite as.** Wulf A. Kaal, Fair Token Launch (2022). SSRN: https://ssrn.com/abstract=4015908

**Verify.** sha256 of source PDF `e0925afde0c42a16cd5310983789fae3eb3d1f121e2954a72afa64191d00fe37` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202022%20-%20Fair%20Token%20Launch.pdf

**Failure mode.** Trading before product exists  (family: investor-protection-gap)

**Topics.** securities-law, risk-and-incentives, tokenomics

**Keywords.** ico, risk-factors, product-risk, token-trading, investor-harm

**Related claims.**

- supports: https://wulfkaal.github.io/claims/3067615-037

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