Dear ICO Teams, Stop Offering High Presale Bonuses

bittick

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Quote from: OriginTrain on May 24, 2018, 10:38:33 PM

Nearly every single ICO is dumping at 10x lower than ICO price recently, apart from Credits which is the on exception I can think of. This is due to presale investors dumping their tokens. The practice of giving such favourable returns to presale investors will eventually lead to retail consumers no longer participating in ICOs, since they will always get dumped on. This practice needs to end.

I thought that only some icos were offering a little bonus can get up to more than 2x from the ico price. Not only credut but open token has already traded around 2.5x from the ico price too.
pre-sale is the worst part in the ico.

VenturaBro

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Quote from: Probinus on May 24, 2018, 10:54:02 PM

I don't think we can blame the team for doing so. They believe in what they're trying to do is great, with this the teams demand is high. Some investors can also see this point of view that's why they invest, but others do not, resulting with the project not reaching the soft cap. Making the tokens value drop after listing on exchanges.

Yeah they're just trying to provide incentives for people willing to invest in them, which doesn't sound bad on paper.

aoihs00

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That is obvious thing to do as they wont be very good if they dont give discounts to early birds. If they are not giving it then people may not join these ICO projects and thus they may end up reaching max soft cap only. Such projects may not even reach the exchangers as they were unable to sustain any of the ICO sales. As long as the project is hugely popular then we can say that those ICO dont need any attention via discounts and perks. But traditionally most of the ICO do need this marketing strategy to attract lot of people to become successful.

CHENIEN

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I have no enough experience on this business, but I think the control power on this business are only beyond the management and not the users and investors, maybe there are some control of manipulation but the power of control system are still on the cryptocurrency management.

entr

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I think presales a good kickstart for ICOs. Recently, coinmetro which presale price is %25 of last token sold in ico locked tokens of presale for 2 or 3 months after release of tokens. It's a good move for protecting other investors.

Eclipse2021

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I think this is just a part of their marketing strategy as we see every single ICO doing this. It would be nice if they can reduce the total bonus and make it smaller as the first investors get a nice price and they can manipulte the price of the first months after token/alt get listed on exchange and I think they snatch the bounty tokens too when hunters are selling.

OriginTrain

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Some great responses here, many of which I agree with. A good common suggestion is a vesting/freezing restriction period for pre-sales, perhaps for the same period as the team members, and also to reduce the pre-sale bonus from 100-1000% to somewhere in the 30-50% range.

Making it standard industry practice to offer a 50% pre-sale bonus, with a token-freeze of 1 year, will still attract pre-sale investors, whilst also protecting mainstream investors. I'd certainly invest in a pre-sale under these terms; looking at 50% yearly ROI for a solid project I've researched is magic money in finance. There's a difference between god-like returns, and absolute unsustainable greed.

It's the mainstream investors that are the golden goose that we would all ultimately be so very foolish to milk for short term gains. The SEC is watching, and pissing off more mom & pops with token dumps isn't a great idea.

If any ICO team is reading this, please consider the responses here. Overly greedy business practices will not only backfire on you, but all of us.

leea-1334

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It is already happening actually. The statistics show a lot of funds still being raised this year than in previous years, but you can see that most of those sold out ones or successful ones all sell out in the bonus phase. Those ICOs that pass the pre-sale or bonus stage fail to attract more investors in the so-called "general public sale".

I think pre-sale should be extremely limited, it should be with proper KYC investors, so people also know who they are who dump. It is their right to dump of course, but ICOs should look for long term partners. Pre-sale should also have lock-in token period. Get big discount for sure, but you must hold for min period.

trecore4

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Quote from: kier010 on May 25, 2018, 02:50:21 AM

bonus attract investors so offering it in their ICO will help them. the first always get the privilege and it is part of their strategy. it depends on the project also but mostly ICOs coins today are below ICOs price after it hit exchange.

Yeah its completely true fact. It is just marketing strategy to attract more and more investors to it. And it is surprising that how people get attracted to it and load thousands of dollars in the pockets of these people. This is really unbelievable fact and they dont even see the insights of the ICO completely. Many people just pop in and think that this is the next big thing of this year and just start pouring the money. Anyway thats different thing but really we cant help in it and they will get their wallets fat day by day as they form more and more ICO's. Sounds like wolf of Wall Street movie. Lolz

trang1188

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hight bonus for ppl come early or they invest more money for project,hight bonusi s campaign marketting of project,we can't do anything,or you can buy earlier to get hight bonus,i also invest some project and now it fall to the price usd i buy,but i decide hold to roadmaps complete,this project end ICO 1 years,i see they still support for everyone and update,i hope it can success in the future

kier010

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bonus attract investors so offering it in their ICO will help them. the first always get the privilege and it is part of their strategy. it depends on the project also but mostly ICOs coins today are below ICOs price after it hit exchange.

Hui8

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Quote from: OriginTrain on May 24, 2018, 10:38:33 PM

Nearly every single ICO is dumping at 10x lower than ICO price recently, apart from Credits which is the on exception I can think of. This is due to presale investors dumping their tokens. The practice of giving such favourable returns to presale investors will eventually lead to retail consumers no longer participating in ICOs, since they will always get dumped on. This practice needs to end.

Do you really think that they will do it anyway. I mean they are just looking after themselves and whatever they get from the private sale is what matters to them a lot as it is huge money for them to get started with their payment. I dont like the idea of private sell anyway as it is to limited people and they are also too much costly. When it comes to later part then we get them at discounted rates too but they are more costlier than basic prices at the time of private sell. So yeah surely they should be stopped but looking at the benefits for ICO owners they will never stop it at all.

aleksnutis

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Quote from: OriginTrain on May 24, 2018, 10:38:33 PM

Nearly every single ICO is dumping at 10x lower than ICO price recently, apart from Credits which is the on exception I can think of. This is due to presale investors dumping their tokens. The practice of giving such favourable returns to presale investors will eventually lead to retail consumers no longer participating in ICOs, since they will always get dumped on. This practice needs to end.

I completely agree. Now in 99% of ICO it makes no sense to participate at the stage of the main sale. All those who bought tokens on pre-sale and private sale are selling them on the first day of listing on the exchange. Now no one holds tokens, there is no interest from investors. Need to introduce a token freeze system for customers at all stages of sales.

Black Coffee

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Quote from: Caesar Cung on May 25, 2018, 01:09:07 AM

Quote from: Black Coffee on May 25, 2018, 01:08:03 AM

I agree with you, the main problem is giving a very high bonus, which will create a big disposal of the investor. because this is very important and if when token listed in exchange price far from ico price then it is a very bad start.

Tomorrow is going to be an interesting day. I personally do not think SEC will declare ETH is a security; I just do not see it. However, if for some reason they do, (not sure what the reason would be); there will most likely be a huge lawsuit and legal battle against the decision. Imagine every exchange uniting together, the ETH foundation, and all of us. The case would most likely reach the supreme court. What SEC is doing feels like a message to new icos. If SEC will look at the legitimate top projects, then what do you think they'll do to us? This should discourage any scams or fraudulent ICOs.

sorry the topic we're talking about is "Dear ICO Teams, Stop Offering High"
so I do not want to discuss anything other than the topic, I'm sorry.

snowfu199

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I do think >30% bonus is way too much. It makes the ICO less attractive.
If a project offers high bonus to presale or private sale investors, I'd skip the ICO.

Gabteb

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So if they will not do that what do you think how much of them could make ICO yep its not so good but people need money to start and who will buy tokens with high price if there is no bonuses.?

Maestro75

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Quote from: OriginTrain on May 24, 2018, 10:38:33 PM

Nearly every single ICO is dumping at 10x lower than ICO price recently, apart from Credits which is the on exception I can think of. This is due to presale investors dumping their tokens. The practice of giving such favourable returns to presale investors will eventually lead to retail consumers no longer participating in ICOs, since they will always get dumped on. This practice needs to end.

Thank you for pointing this out. You are very correct and this is now a big issue for those participating in icos. There is easy dumping now than it was last year. Those who have the bonus quickly sell even at a loss to the entry price at ICO. May be in general the free bonuses is not a good idea. Even the stakes acquired at bounties also contribute to this price fall.

pranazzs

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Quote from: OriginTrain on May 24, 2018, 10:38:33 PM

Nearly every single ICO is dumping at 10x lower than ICO price recently, apart from Credits which is the on exception I can think of. This is due to presale investors dumping their tokens. The practice of giving such favourable returns to presale investors will eventually lead to retail consumers no longer participating in ICOs, since they will always get dumped on. This practice needs to end.

Very, very agree. it should be so. high presale bonus must be eliminated.
what do you think if the highest Bonus is 10% with minimum purchase terms.

sangkler11

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I think it's hard to stop it, all projects have a soft cap in pre sale or token sale, and they use this way to attract more investors to buy, so the target can be achieved.

DarkBullet

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I think that the bonus during presale is not to be blamed of since it is their privilege as an early investor and adopters. A massive sell off might also from bounty hunters or it might driven by coinmarketcap's price result on each altcoin. There are a lot of reason for altcoin price dump actually specially, a bitcoin price movement can also affect other altcoin price.

Topic: Dear ICO Teams, Stop Offering High Presale Bonuses (Read 204 times)