14.2 Market Volatility
The ARX token, like other digital assets, is subject to price volatility driven by market demand, liquidity, and macroeconomic conditions.
Risk factors
Token price fluctuation: External market forces can influence the ARX token price, independent of project fundamentals.
Liquidity risk: Low trading volume on exchanges may impact the ability to buy or sell tokens efficiently.
Macroeconomic conditions: Market downturns in the broader crypto or financial sectors may reduce token utility and adoption.
Mitigation
The ARX economic model emphasizes long-term utility and network-generated revenue rather than speculative trading. The DAO maintains liquidity reserves and treasury management policies to stabilize the token’s ecosystem value.
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