The liquidity offered by the token model means that early VC/hedgefund backers often get heavily discounted tokens in the presale, and can then turn round a mon

The liquidity offered by the token model means that early VC/hedgefund backers often get heavily discounted tokens in the presale, and can then turn round a month or two later and dump a portion of their tokens on public investors for a sweet profit or to mitigate their own risk. Polychain did this with 0x project: https://www.reddit.com/r/0xProject/comments/6w3zv0/0x_being_dumped_by_polychain_capital/ https://www.reddit.com/r/0xProject/comments/6w3zv0/0x_being_... The effect was attenuated in this case by the success of the project, however in lower performing ICO's like Kik's Kin, where the market price is 50% of public sale price or less, big early investors dunking on public token sale participants feels pretty wrong. In addition to this, VCs are also often playing a role in promoting public sales shortly after their own pre-sale investments, without disclosing their own discount or terms of obtaining tokens. Its kinda like telling people to buy a bunch of stock at $10 when you bought all yours last week for $5 and you're keen to dump a portion of them for $15. https://medium.com/@rzurrer/raiden-fundamental-infrastrucutre-led-by-a-great-team-96c725fba9de https://medium.com/@rzurrer/raiden-fundamental-infrastrucutr... It may be legal, you may think it's their right, and to be fair there is risk involved in being an early backer in a potentially failed project, however it is something to think about.