Tokenomics, liquidity risk and how to research a token

Tokenomics means the economics of a token: how many exist, who holds them, and how supply changes over time. These numbers often matter more than the story on a project's website.

Many projects lock tokens for the team and early investors, then release them on a schedule called vesting. Each release is an unlock. New tokens hitting the market add supply, and if demand does not grow, the price tends to fall. This spreading of value over more tokens is dilution.