If you observe the price profile on almost any token (eg in coingecko), you will see a quick peak to ATH soon after the launch, and then, a quick collapse to a mostly flat profile near zero. Any random example could be this one: https://www.coingecko.com/en/coins/lung-protocol
I am designing the tokenomics of my token and I would like to prevent this, if possible. At least to understand its causes. So what do you think is the cause of this fact?
As a possible explanation I guess it could be that, just after the ICO, the project team mints many new tokens and, at the same time, withdraws the funds provided by the ICO, so this means an overflow in tokens backed by almost no ether, and therefore exchange algorithm collapsing the price of the token.
But I really do not know if this is the correct answer. Could someone help to provide an insight here?