# open markets are generally bad for early stage communities and ventures

Source: https://warpcast.com/jtgi/0xf82707c8
Kiwi News: https://news.kiwistand.com/stories/open-markets-are-generally-bad-for-early-stage-communities-and-ventures?index=0x6758453485b148e8fb0513af7e3bef2fcaf67868df45a75d5d42cdc686b4346a1ff1ede7
Submitted by misha on 2024-12-10 UTC, 6 upvotes, 2 comments

## Summary

The author argues that open markets are generally bad for early stage communities and ventures. Listed harms include distraction, attracting speculators, activist "investors" and unaligned people, distorted incentives when prices swing too high or low, and a culture that becomes financialized and centered on price. The author acknowledges some exceptions but says the same outcomes have repeatedly played out over years of observation.

## Article

I think open markets are generally bad for early stage communities and ventures.

Massively distracting. Attracts speculators, activist 'investors' and unaligned people. Distorts incentives if things go too high or low. Financializes your culture and centers your movement irrevocably around price.

There's some exceptions but overall I've seen the same things play out thousands of times over the years.

## Comments

**misha**: > You’re essentially trying to capitalize on renting / letting out a house that hasn’t quite been built yet and arguing over how it should be furnished. I think there’s a order of operations

comment by @july https://warpcast.com/july/0x40316f2e

**ccarella.eth**: Feels like there is a missing step or 3 by just going fully open token market. I guess this is where pre-sales come in. It would be good to sell tokens to true believers first who essential act as angel investors. Ideally the team, not an LP position, gets this capital so they can build with it. Then eventually its a full public launch (potentially after multiple token rounds). 

The challenge with this approach is then the early investors have incentive to sell all their tokens on Day 1, since they got in at such a low price and can instantly profit. So then you need to play around with lockups, etc.