HikariLabs has experimented with the human psyche and the effects of price on token projects.
Investor confidence is one of the main drivers of traditional markets. You can measure the strength of investors' fear and greed by looking at the changing prices of Treasuries (that safe-haven during times of fear) compared to that of high-yield bonds (representing greed, or a desperate reaching for income).
In a very similar way, in a market with less participants - (i.e on small cap digital asset markets) we can see this in a very amplified manner.
For one, we look at token success metrics based on token price, the chart direction, in addition to a new metric: Token Holders.
In one way or another, this becomes a self-fulfilling prophecy during the early stages of a project:
For new projects, this growth will inevitably be amplified for both directions, meaning the party continues until the music stops. Without ration or reason, if a token price were to immediately drop without news or an update - investor confidence also decreases.
For all we know, an early buyer could just be offloading tokens, or exited by accident. With the ecosystem being in its infancy, this will cause a chain reaction even if the project team continues to deliver.
Hikariswap uses OTC trading to allow larger early buyers to offload their tokens to buyers to prevent abrupt sells on the token chart. Mending investor confidence and allows more optionality to token projects in terms of exit strategies for themselves or their token holders.
Hikariswap also uses TWAP and VWAP algos for larger buyers to sell their tokens on the open market slowly and predictably - reducing their slippage and also the effect on the larger token holder community.
Most importantly - project founders can also utilize Hikari's algorithms to grow their own treasuries using their own funds. By opening TWAP's to buy and build a strong foundation of volume and price growth over time, as well as VWAP's to be able to absorb larger price impact from abrupt token sells.