KOL Rounds: Influencer Token Allocations, FOMO and Risks
KOL Rounds have become a dominant token distribution model in crypto fundraising, with projects bypassing VC and offering discounted allocations directly to influencers. According to recent data, 3,860 tweets mentioned “KOL” versus 3,078 for “VC,” signaling a shift toward influencer marketing. Successful KOL rounds like Aster (70× gains) and Holoworld AI’s HOLO (444% returns) showcase high early liquidity, but pump-and-dump cases such as SatoshiVM (SAVM from $11 to $0.075) and ZKasino’s asset freeze underline extreme volatility. Trading participants and retail investors should scrutinize token unlock schedules, vesting terms, VC backing, agency credentials and team reputation before buying into any KOL round. While KOL rounds accelerate FOMO-driven price spikes, they also introduce accountability gaps and steep sell-offs, making rigorous due diligence essential.
Neutral
The news highlights both the short-term gains driven by KOL round hype and the long-term volatility from pump-and-dump events. In the near term, KOL-backed tokens may see sudden price spikes, attracting speculative traders. However, recurring sell-offs and accountability gaps tend to dampen sustained buying momentum, leading to mixed signals. Overall, the model’s double-edged impact on liquidity and market confidence balances out, resulting in a neutral outlook.