Topic: Do altcoin bounties crash the price? - page 2. (Read 648 times)

Interesting replies thanks. I guess that's true if the bounty is in the 1-2% range the bounty hunters are not really effecting the price. I agree I'm mostly likely wrong about that. Perhaps it's mostly pre-sale bonus investors, which seems to be a far bigger issue. I've invested in about 10 ICOs so far and all of them have fallen below ICO price within a month of the ICO, particularly on Etherdelta. It's just hard to imagine panicked investors are always selling at a loss so quickly. Where do you think the dumping is coming from? I think it must be the pre-sale bonus investors arbitraging their bonus %. And even just 10 or so whales doing this is enough to provide high volume to manipulate the price below ICO price for a long time.

Pre-sale bonuses for whales seems quite unethical since ordinary retail investors who provide the majority of the capital during the main ICO are penalized the most, whereas those who pick up the token cheaper on an exchange a month later who didn't take that initial risk (and provided no capital to the team) are rewarded with cheaper tokens. Most recent ICO was Black Moon Crypto. That was heavily hyped and sold out within an hour or so, now it's trading less than ICO price. Actually the BMC team seems very good though since they're doing a buyback of tokens at 80% of the ICO price, which is a very nice move to limit the loss to ICO investors which Ir espect. Without that the price would probably be much lower right now. But still, the fact remains its below ICO price. Another big ICO was Aventus that sold out within minutes, also now below ICO price. I didn't invest in Paragon Coin since the bonuses on that were ridiculous, it is obvious it will be dumped far below ICO price when it hits exchanges.

As someone mentioned, with a long term holding approach none of this should even matter. And I agree. Nevertheless, even for long term holding it seems wiser to buy tokens after they hit exchanges rather than through the ICOs. As I say out of the 10 or say ICOs I've invested in, all of them are trading below ICO price (unfortunately I got in after the early August boom).

I think as investors it's wise not to participate in ICOs but rather to buy up the tokens after the pre-sale whales do their exchange dumps. And if enough retail investors realize this perhaps project teams might start losing ICO funding and stop issuing ridiculously high "pre sale" bonuses to whales. Or is my thinking completely off here?

This thing i would supposed to say too which the bounty allocation is just 1% which it can really affect the price if all bounty haunters would decide their tokens.If you are an investor of a certain ICO you would really got worried but eventually theres really always a point on where a certain coin do hype up for one time which would definitely surpass on ICO price and as an investor you should really keep an eye on this opportunity for you to sell out and secure profits.

If a bounty is set at a reasonable price, then there is not a problem. If the bounty takes 3-4% of the token pool, then the project would appear scammy.

I agree with you, that bounties could cause price dumping under some circumstances, mostly when new cryptocurrencies/tokens don't come with a serious project. But they offer a great way to get many people familiar with new promisible projects. So much experience in marketing, development and innovative projects are needed for the success of new cryptos.

I think yes. Because usually when they pay the bounties, volume in exchanges for that coin usually is very low. So small amount of sells even effects on price.

I do not think that bounty hunters can significantly lower the price because they have a very small percentage of the total amount of coins

Not always. It depends on how much was given away and how many want to dump. If the project is good and has a great team then it should stay stable and you would be foolish to sell.

You need expert opinion form, what do you think about the decentralized e-Chat application? How strong is it in the market?

Yes they can if all of them sell immediately but it is not important because it means that there are buyers so the coin is actually valuable.

Developers of the new cyrpto-currencies are using bounty programs to promote their project. Maybe some people who are obtaining the bounties can dump the price of the coin when it hits an exhange. But if they make a good plan for their bounty programs; it wouldn't be harmful for the future price of their new coin. Just my opinion.

The truth is that we must be ready for all capabilities. Sometimes investors understate ICO price and sometimes this same thing doing bounty hunters.

So i recommend it but you must be careful

yeah bro.i think so too.the bounty percentages is too small to affect the price movement and beside not all bounty participants sell their coins.some do hold it.but the outrageous bonuses some ico gives pre-sale investors is another matter.that might be a factor and another reason is the investors orientation. Most ico investor are not in it for the good of the project but just to cash out when the price rises by a certain % and moves on to the next one.

I don't buy the idea because I participated in an ICO that worth 1USD per token, the token hits market at 70 cents, some investors dump the coin at 59 cent. In a way both bounty hunters and investors contribute to low price when coin hits exchange.

Why do you think about these things anyway?
If you invest in ICO it means you are not going to sell it ASAP, you are investing in long term because you believe that project will be successful and you will get your shares every month, bounty dumpers shouldn't bother you at all.

Each project that has a bounty allocates a certain amount of their tokens for bounty. Many of the people who are obtaining the bounties can obviously dump as soon as the coins hit an exchange but the total bounty allocation is usually very small. It is worth asking the team if it's not stated on their ANN so you can factor this into any investing decisions but I don't think it's a large factor. Also, people often put in work for bounties and many of them believe in the projects and hold long term.

Being listed on exchanges rarely happens immediately after the token distribution date. It usually takes several weeks to get listed as far as I know, so bounty people still have an opportunity.


I think so too. Actually, the total bounty pool of an ICO is hardly more than 2%. I have met 1% in most cases, and the ranges 0.5-1.5%. So that's not likely to be a big deal anyway.

As a person who has participated in a few bounties till now, I assure you that bounty people never dump their coins in haste. If you look at it this way, mostly bounty tokens are distributed after 2-4 weeks or normal token distribution. So by this time the token has mostly made its own price range between which it trades. Also bounty tokens are only a very less percentage of total distribution, so they cannot lead to dumping of prices.

The percentages of tokens dedicated to bounties are usually vey low so the dumping you see most of the times when ICO tokens hit the exchanges is due to the low demand combined with panic sellers. There are so many ICOs in the past months that money is more spread and only the most hyped ICOs will do well after they hit the exchanges because demand will follow trough after the ICO ends and more investors will want to buy it.

yes I agree with you, the allocation of funds for bounty is usually only 1%, so it does not really affect the price of coin in the market, but what makes the coin is down is the holders of coin presale ico and ico, they mostly sell the coin immediately after entering the exchange.

Well it depends

As most of the ICO took out 1% of raised fund towards bounty, IMO this is good because 1% would perhaps affect a bit but wont "Crash" the price