Do you think 40% bonus is too much for early Investors?

Iyanu14

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Quote from: Torps1 on August 18, 2019, 11:58:09 AM

In some cases where a token price crashes soon after listing on the Exchange, the blames has over time been attributed to the bounty hunters and sometimes to early investors that received certain bonuses.

Do you think 40% bonus for early investors is too much and capable of crashing token price?

In my own opinion, 40% is just too much for the early investors. This was the question I put to the team members of one bounty I'm presently in. Too much of the tokens in the hands of some will definitely not good when the coin is listed. Those that have much of it will not care to dump it when it is listed.

bits4books

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Crypto is not a religion but i like it

If you see a 40% bonus , you can safely call the project a pyramid and not contact it. This is one big red flag. There are already a lot of stupid projects on the market (as you know) that make people lose money. Best that you can do - just ignore them and dont invest anything

terrific

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Quote from: shoreno on May 08, 2020, 10:46:17 AM

Quote from: terrific on May 08, 2020, 10:33:36 AM

Quote from: tunapa on May 08, 2020, 09:57:04 AM

Why won't it affect it. If you do simple maths you will see it will have huge effect on the price. It means if one person or two could manage to buy all the ico/ieo tokens with that huge bonus they can control the price at will whenever they like.

But if they by it all and there's no progress for that project, they just bought a trash.
A trash that's no one willing to take so they can get the bag of their money investing to that project. If they want to control it, I doubt it that the developers will even allow it unless they're just for the money of the investors.

trash that arent going to take yes so what the reason of buying them ? but only if they are smart enough to notice it while others are just depending on thier luck and always believe on huge bonuses . legit or not legit , there are always huge bonuses for early investors because this is on of their ways of promoting thier project . 40 percent is small depending on what you have spend because if you spend big to get that bonus , that will still be nothing . so id rather go on small but realistic bonuses .

In the beginning investors don't think that these projects are trash that's why they're buying them.
That's is the reason when an investor gets overwhelmed by his feelings, he has the thought of buying all of it because he thinks that it's lucrative.

nreal

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Many people may think that the 40% bonus is too high, but the fact that the project team token valuation does not need to follow any rules. They can set a high price and reward the buyer, making the buyer feel like he is making a good deal.

nicecrypto

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If you think 40% is high then what would you say about a project offering 100% bonus, when i saw that i knew that was not going to be a serious project, they are here for quick gains and the will run,
40% is already way too high for a project to offer early investors, a bonus should not be more than 15%, if the team cares about the project, too much bonus will surely affect price.

lunnatic

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COMBONetwork

one of the reasons why the price of tokens or coins from the Project after being listed on the exchange is a bonus given more than 20%!
indeed it can be said that the bonus can provide multiple benefits, but as far as I know it is nonsense

ololajulo

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Quote from: JHORN on May 08, 2020, 08:47:02 AM

Quote from: Torps1 on August 18, 2019, 11:58:09 AM

In some cases where a token price crashes soon after listing on the Exchange, the blames has over time been attributed to the bounty hunters and sometimes to early investors that received certain bonuses.

Do you think 40% bonus for early investors is too much and capable of crashing token price?

40% is too much for early investors, this gives good reason for all investors to dump, saying bounty hunters can be blame is a point but not always, sometimes the team do the dumps themselves

40% is high but I feel the project management of the token is more important. Locking such reward for a longer time with staggered release wont be different from staking. Asides the large bonus, large purchase should also be controlled but not out-rightly discouraged. In long run any coin can be owned in large quantity with staggered purchase by a trader and it will be the same as purchasing in market but the early stage of dump can be discouraging to traders. so the Idea of staking is generally encourage to cub the dump.

shoreno

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Quote from: terrific on May 08, 2020, 10:33:36 AM

Quote from: tunapa on May 08, 2020, 09:57:04 AM

Why won't it affect it. If you do simple maths you will see it will have huge effect on the price. It means if one person or two could manage to buy all the ico/ieo tokens with that huge bonus they can control the price at will whenever they like.

But if they by it all and there's no progress for that project, they just bought a trash.
A trash that's no one willing to take so they can get the bag of their money investing to that project. If they want to control it, I doubt it that the developers will even allow it unless they're just for the money of the investors.

trash that arent going to take yes so what the reason of buying them ? but only if they are smart enough to notice it while others are just depending on thier luck and always believe on huge bonuses . legit or not legit , there are always huge bonuses for early investors because this is on of their ways of promoting thier project . 40 percent is small depending on what you have spend because if you spend big to get that bonus , that will still be nothing . so id rather go on small but realistic bonuses .

Nalbo

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40% bonus for someone who buys early and lesser for a later investor is not a feasible business model. The cheapest coin is actually considered the worth of the tokens and it literally means the project is inflating the price for its investors. I don't think any real project with legit financial advisor would let them give more than 20% bonus on any stage.

Barbut

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Quote from: tunapa on May 08, 2020, 09:57:04 AM

Why won't it affect it. If you do simple maths you will see it will have huge effect on the price. It means if one person or two could manage to buy all the ico/ieo tokens with that huge bonus they can control the price at will whenever they like.

This is happening with every project, not just with crypto projects, there are investors who can take the entire companies. If it happens that just one person buys all coins from a private sale, than it will be difficult for all others when that person makes a move and sell his stash! It's not terrible for other small-time investors, bounty hunters, it can be terrible for the project itself and the entire team behind!

terrific

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Quote from: tunapa on May 08, 2020, 09:57:04 AM

Why won't it affect it. If you do simple maths you will see it will have huge effect on the price. It means if one person or two could manage to buy all the ico/ieo tokens with that huge bonus they can control the price at will whenever they like.

But if they by it all and there's no progress for that project, they just bought a trash.
A trash that's no one willing to take so they can get the bag of their money investing to that project. If they want to control it, I doubt it that the developers will even allow it unless they're just for the money of the investors.

tunapa

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Why won't it affect it. If you do simple maths you will see it will have huge effect on the price. It means if one person or two could manage to buy all the ico/ieo tokens with that huge bonus they can control the price at will whenever they like.

mynadira

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when there is an IEO or ICO that gives a bonus of more than 40% when participating at the beginning of the collection of funds then you should avoid the project and as much as possible to NOT make any investment in the project because when the collection of funds is completed the price will collapse immediately and only the loss will be you get it.

InwardContour

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Quote from: bussybuddy on May 08, 2020, 08:32:12 AM

It's a huge offer, it can cause a downfall for the project if the tokens are unlocked at the same time. If they offer an offer like that, then they need to have a distribution schedule in multiple installments to avoid causing collapses price

You all saying 40% bonus is too much, yes I agree but what if it's just a facade? What if the project intend selling the token for 1$ and then come up with a strategy that will attract more investors by pretending to offer bonus. When in the real sense there is no bonus, instead of 1$ initial price, they sell for 1.4$ with 40% bonus. If you understand what i mean, the 40% bonus in this case is just a means to attract more investors. Well i don't invest in projects giving too high bonuses to early investors, for me its unnecessary and might be detrimehtal in the long run.

JHORN

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Quote from: Torps1 on August 18, 2019, 11:58:09 AM

In some cases where a token price crashes soon after listing on the Exchange, the blames has over time been attributed to the bounty hunters and sometimes to early investors that received certain bonuses.

Do you think 40% bonus for early investors is too much and capable of crashing token price?

40% is too much for early investors, this gives good reason for all investors to dump, saying bounty hunters can be blame is a point but not always, sometimes the team do the dumps themselves

so98nn

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If an ICO throws away 40% Pre-ICO discount then just note that its gonna be flop project or the management staff is idiot!

That is really really overwhelmed projection of ICO getting successful and their alts getting pumped nicely in the market after they launch it over exchanger. I mean come on, so the whole project is already in debt (ideally) when they are providing discounts of 40%! This is in view of other costs that they have to cover throughout their Roadmap. They need pay for their bounties, sig campaigns, airdrops if any, which is basically free coins for the users. Most of them will dump the coins as soon as it hits the market.

This dump + that 40% discount they need to cover up but hey hey wait, the coin never makes up the price at which it was sold earlier. So never mind, it then gets dumped and dumped and all you get is fraction of pennies price per coin.

Eventually project masters wont be able to bear the cost of exchanger fees, sign ups, their web hosting and real products manufacturing if they have any. This all sums up to dead project.

So YEAH! It's too much.

bussybuddy

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It's a huge offer, it can cause a downfall for the project if the tokens are unlocked at the same time. If they offer an offer like that, then they need to have a distribution schedule in multiple installments to avoid causing collapses price

Malam90

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Quote from: Youghoor on April 06, 2020, 05:51:52 PM

Absolutely, offering 40% bonus in any fundraising is too much and investors are likely to dump their tokens as soon as possible when it goes on exchange. I think the best figures is to be within the ranges of 10-20% with maximum ever being 25%. Anything above this can lead to the collapse of the project in the future.

I agree with you in this point that some project offer 40-50% bonus for the investors that is too much. Investors try to sell their bonus after the listing and this bonuses is one of the main factors to dump the price although they blame on bounty hunters but this is not true. 10-20% bonus is the standard for the investors.

@baoli

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Base.protocol

This is actually very huge. The sad part is that most time this is done privately, genuine investors won't know what actually happened. But if a project can sell at 40% with a good spread then it might work.

aemma

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Quote from: Torps1 on August 18, 2019, 11:58:09 AM

In some cases where a token price crashes soon after listing on the Exchange, the blames has over time been attributed to the bounty hunters and sometimes to early investors that received certain bonuses.

Do you think 40% bonus for early investors is too much and capable of crashing token price?

Yes I think it is quite too much for new or early investors and when such happens there is every tendency it will crash the token price. There have been many projects which did this, and of course the token price was affected badly forcing the project to be worthless. The truth is, most times the team don't think of the impact of most things such as this one because at that point in time or during the public sale, their sole aim is to raise money without giving concern to the future price of the token. Another funny thing is, some projects which do this, will still in turn blame bounty hunters when it is obvious the problem is from the team.

Topic: Do you think 40% bonus is too much for early Investors? (Read 6034 times)