After ICO, the tokens sank in price. Why?

fosco333

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Quote from: Pleasuremodel on June 08, 2019, 03:32:48 AM

As a rule, most blockchain- projects that have collected tens of millions of dollars for ICO, issue tokens on the exchange without real production growth.
What does it mean?

It means it will need times for the blockchain projects to keep developing.
And finally releasing the products that can be used by many peoples.
If this happening, then the token price will skyrocketing because the demands for using the token in their products.

Sithara007

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Quote from: libert19 on June 23, 2019, 10:34:09 PM

ICOs release their tokens without any real product where these tokens can be used, that results in dump on exchanges. Have good use case to tokens and keep them locked until products are rolled out to prevent massive drop.

What is the point in conducting an ICO, in case the tokens are to be locked in for a long duration? Nowadays a lot of projects do ICO, without any proper planning. Many of them initiate the proceedings even before 1% of the development is complete. It will be no surprise that in such cases the tokens drop by 90% or more upon listing (as we have seen from countless past listings). And the problem will be exacerbated if the promoters dump all their holdings and convert their tokens to fiat or ETH.

libert19

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ICOs release their tokens without any real product where these tokens can be used, that results in dump on exchanges. Have good use case to tokens and keep them locked until products are rolled out to prevent massive drop.

MUG1WARA

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most projects only seek profits, after they get a lot of money from investors then they put on the exchange and after that they leave the token without issuing real products.. they said if they were developing even up to 6 months they would still say SOON Cheesy

masulum

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hmph..

There is much reason why after ICO many tokens or coins fall when listed on the exchange. as far as I know,
1. The team is not serious about their projects.
2. No update of their projects
3. Investors lost their trust
4. Airdrop or bounty hunter sell tokens or coins whit low price.

And many reasons may I don't know.

kisfoxs

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Quote from: Pleasuremodel on June 08, 2019, 03:32:48 AM

As a rule, most blockchain- projects that have collected tens of millions of dollars for ICO, issue tokens on the exchange without real production growth.
What does it mean?

From my observations so far following the project is a lot of people who are too fast selling coins. Even investors and teams are holding large amounts of coins. It has been selling coins very quickly, thus affecting prices and prices falling directly.

To recover again requires the hard work of team and developer project in search of investors again. And the price drop after the ICO is now becoming very reasonable.

waynechong1995

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swing!

On the papers, product isn't matured, there's exclusive discount for early buyer that could instant profit, or investors changed their mind over many factors, or simply too much supply is released and most of the people aren't waiting to hodl long term. Some owners controlled the supply for exchange to maintain some form of liquidity. Yet these are effort prevent the value from crashing. You can't expect a not so popular coin to perform with a solid reason

ljane

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Its so obvious isn't it? The only reason why after ICO, the tokens sink in price is that investors sell off their tokens once ICO sale is over just to avoid holding shit coins.

Nila soru

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Quote from: Pleasuremodel on June 08, 2019, 03:32:48 AM

As a rule, most blockchain- projects that have collected tens of millions of dollars for ICO, issue tokens on the exchange without real production growth.
What does it mean?

Well, you're still new to the thing. That's how it used to be for most of the ICO. You should ask yourself why investors are now fond of selling their tokens once the ICO sales is over. That's because they want to be holding shit coins. People only go for it at first and they are being hyped to the extent they will grow during the ICO but after the ICO the price will start falling and if you continue holding those coins you will just end up as the loser there cause hardly will anyone buy those coins and they are going to keep falling. So it's up to you whether you want to start doing the same thing like others do, or just stay off from them completely.

Oceat

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Quote from: FOPL on June 17, 2019, 04:23:11 PM

it simply means the project will die out eventually. This might be due to lack of working product, token utility, and no better token economics

It was all just a useless token being hyped up just to increase the price to gather more investors but after a certain period, you will just going to notice that the price starting to dump. That's why we all need to do our own research first if we want to see a potential coin growing not those bunch of shit coins.

tracyhayley

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First, maybe The team didn't serious about their project, i mean they just think about how to get money fast. 2nd, it dumped buy bounty hunters and some investors who sold their bonuses that they bought it when ico pre-sale. They usually sold the ICO coin/token with low prices.

Stage3

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Hey mate,

I do believe it is because there are to many Pre ICOs and Bounty Hunters.

What do i mean with that exactly. If you sell tokens on a 30% discount the investor will sell those tokens with a almost guaranteed profit on the day of the launch on an exchange. The Bounty hunters might do the same at the same time to get still some money out for their free tokens.

If you calculate that all together it is definitely one of the main reasons the prices sink after an ICO. As i plan my own ICO currently, we have the same discussion and believe that Bounty Hunters should only get a max. of 5% of the total token supply, furthermore there is no PRE ICO with big discounts. Thats currently the only solution i see, to keep the token stable and potentially gaining momentum after an exchange launch

jhongzjhong

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Quote from: milewilda on June 17, 2019, 04:18:40 PM

Quote from: LogitechMouse on June 16, 2019, 02:05:50 AM

3 words. To Take Profit.

This is the main reason why all of the ICO always sank in price. Bounty hunters, investors and even the team itself sell the tokens to get some profit making the price plummet. After that, it will depend on the team if they will continue the project or not. If they will continue then well and good but if it is not then it will be a scam and those who sold their tokens and got their profit are happy Cheesy

.

Why people cant really realize on whats the main purpose or reason why we do invest into projects?For profits indeed.
Selling everything which way more higher price than on their purchased price.The sad thing is here that most dev or owners
are the ones who do majorly dump of their own tokens for the sake of taking money out of its investors which simply turns out to be a scam.

Definitely, this is right. The fact that bounty hunters are always a profit hunter, not a holder maybe there are some but usually to them they are going to sell token after listing in the market and of course that may cause of the price sank and might can't recover and become a shit project. Good thing if the project had a buyback strategy to their bounty hunters that for sure after listing they will sell. But all of these will depend on the project if how worth it is this.

monalia

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Quote from: tukagero on June 20, 2019, 07:45:04 AM

Quote from: FOPL on June 17, 2019, 04:23:11 PM

it simply means the project will die out eventually. This might be due to lack of working product, token utility, and no better token economics

thats the few reason why a token sank after getting listed on exchanges, you forgot to mention " team dont have enough money to continue the project or else the team is consist of scammers.

Nowadays to get allocation information is easily accessible in internet. So that is used not a matter here for the reasons of tokens sinking. Then if the team is come they will not go to list that tokens on any good exchanges.
When the time by limits for the tokens in the exchanges has been reduced, we will find the the price changes to low in coming days.

diazepam666

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Quote from: Pleasuremodel on June 08, 2019, 03:32:48 AM

As a rule, most blockchain- projects that have collected tens of millions of dollars for ICO, issue tokens on the exchange without real production growth.
What does it mean?

Real production and growth means what you are trying to say about it exactly?
Normally every ICO project collect the funds from the invested at the period of token sale and after some cooling period devil list their tokens on any exchanges. At the time of listing or before that most probably investors and their marketing participants will receive the tokens. Since the value fluctuation heavily impacted coin value will be fall down.

tukagero

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Quote from: FOPL on June 17, 2019, 04:23:11 PM

it simply means the project will die out eventually. This might be due to lack of working product, token utility, and no better token economics

thats the few reason why a token sank after getting listed on exchanges, you forgot to mention " team dont have enough money to continue the project or else the team is consist of scammers.

Nellayar

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Quote from: AB de Royse777 on June 08, 2019, 03:39:27 AM

Quote from: Pleasuremodel on June 08, 2019, 03:32:48 AM

As a rule, most blockchain- projects that have collected tens of millions of dollars for ICO, issue tokens on the exchange without real production growth.
What does it mean?

Well, hype gone and the demand gone. If a token/coin does not have real value then they will fall. Out of the few thousands of crypto in coinmarketcap you will find 99% of them are useless. So do not expect much.

The same is going to happen with these IEO hype too.

Only 2% of the coins in CMC are real, many coins are only for hype. Many projects are just listing their tokens at exchange because of their funds raised during ICO. And scammers made it to have more profits with their investors. When they hyped the coin, soon it will die because there is no product. At the end, we bought the shitcoins for the rest of our life

FOPL

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it simply means the project will die out eventually. This might be due to lack of working product, token utility, and no better token economics

milewilda

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Quote from: LogitechMouse on June 16, 2019, 02:05:50 AM

3 words. To Take Profit.

This is the main reason why all of the ICO always sank in price. Bounty hunters, investors and even the team itself sell the tokens to get some profit making the price plummet. After that, it will depend on the team if they will continue the project or not. If they will continue then well and good but if it is not then it will be a scam and those who sold their tokens and got their profit are happy Cheesy

.

Why people cant really realize on whats the main purpose or reason why we do invest into projects?For profits indeed.
Selling everything which way more higher price than on their purchased price.The sad thing is here that most dev or owners
are the ones who do majorly dump of their own tokens for the sake of taking money out of its investors which simply turns out to be a scam.

Slow death

legendary

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Most of these ICOs are project to solve Internet problems and many of these ICOs have the illusion that your project will have a lot of demand, what happens is the following:

during the ICO only the investors and the bounty hunters know the project, and when the project is listed in some exchange, they do not have demand, it has no new buyers... everything that follows is:

investors, bounty hunters and Dev's sell their coins. and the same investors and bounty hunters come back to buy it again when the price is low and the cycle repeats itself

Topic: After ICO, the tokens sank in price. Why? (Read 591 times)