When enterprise value gets concentrated in just a handful of key figures, shareholder protections become essentially toothless. You're holding equity that's only as safe as the judgment of those few people—and that's a structural problem most projects don't adequately address. In crypto especially, where governance can be murky, this kind of key person risk deserves way more scrutiny than it usually gets.
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SerRugResistant
· 8h ago
Key person risk is indeed a pain point for Web3 projects. Most of the time, the decision-making power lies with the founders, and retail investors are just betting their money on luck.
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MerkleTreeHugger
· 8h ago
That's why I never fully commit to a single project; I mostly bet on the team rather than the product.
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IfIWereOnChain
· 8h ago
Key person risk is really everywhere in the crypto world; I haven't seen many projects dare to face it directly.
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OnchainHolmes
· 9h ago
In other words, if a project is solely supported by a few people, then we small shareholders really become lambs waiting to be slaughtered. Especially in the crypto world, no one can see through anyone, and nobody pays attention to key person risk.
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Layer2Arbitrageur
· 9h ago
lmao key person risk is literally just concentration risk with extra steps. if you're not running the numbers on founders' wallet movements & token vesting schedules, you're already losing basis points. crypto devs really out here building governance theater while actual control stays centralized... classic.
When enterprise value gets concentrated in just a handful of key figures, shareholder protections become essentially toothless. You're holding equity that's only as safe as the judgment of those few people—and that's a structural problem most projects don't adequately address. In crypto especially, where governance can be murky, this kind of key person risk deserves way more scrutiny than it usually gets.