Mechanisms or rules designed to prevent large-scale token sell-offs that could crash the market price.
What is Anti-Dumping?
Anti-dumping refers to mechanisms built into token smart contracts or exchange rules that limit or penalize large, rapid sell-offs of a cryptocurrency. These protections are designed to prevent price manipulation and maintain market stability.
How Anti-Dumping Works
Anti-dumping measures may include sell limits per transaction, cooldown periods between trades, progressive tax on large sales, or vesting schedules for early investors. These mechanisms slow down sudden exits and protect regular holders from sharp price drops.
Why Anti-Dumping Matters
Without anti-dumping protections, whales or insiders can crash a token's price by selling large amounts at once. These measures help build investor confidence, maintain orderly markets, and give projects time to grow organically.
Summary
Anti-dumping mechanisms protect token ecosystems from sudden, destabilizing sell-offs by limiting sale volumes and imposing penalties on rapid exits.
