What Are the Main Risks to Holding LIT Tokens?

[johnblockbuster]

Despite the optimism, LIT also carries notable risks. One concern is valuation: some analysts argue LIT trades at higher multiples than competing derivatives platforms despite having less-proven fundamentals. Additionally, Lighter’s long-term token economics — including how protocol revenue benefits token holders — are still evolving, which adds uncertainty around sustainable value capture.

Another risk comes from post-airdrop dynamics. Trading volume and revenue often spike around incentives, then cool off. Recent data showing declines in open interest and daily revenue have fueled caution among skeptics. For LIT to justify higher valuations over time, the protocol must demonstrate durable demand, competitive differentiation, and resilience once early incentive-driven activity fades.

[etfs]

open interest cooling right after an airdrop is kinda textbook