Topic: Here is why ICOs should pay in ETH instead of Tokens (Read 473 times)
Payments to signatory campaigners for their promotion of the ICO project in ethereum would be very beneficial to all ICO project participants and his team. This would save many problems from absolutely everyone. Those same members of the generosity campaign who would like to get the tokens could already at any time when the token goes down in price, buy it for the received ethereum. Either when completing the participation form, indicate what he wants to receive a payment - ethereum or released token. It would also be very convenient.
2% of total budget isn't that much, so it can't dump prices. Moreover not all participants sell immediately after ICO. But paying in ETH is much more attractive for bounty hunters. Also I saw some projects which clarify in bounty, that they buy back tokens in ETH
I agree with the author, devs should realize this before all ICO's investors start taking this situation seriously i think that most of the new investors got burned during this bear market and some of them think that all ICO's are scams.
Clearly stated and you really have a great point about this, because the investors are the ones who are being put in the risk once most of the bounty hunters dump their coin on the first day that the coins is listed in exchange instead of holding it and wait for the project to prove and rise to it's full potential, because clearly some great project really takes time for them to show their full capability in the market.
I agree with your opinion. Campaign managers should read this article. I'm bored with selling tokens after the end of the campaign. I hope the bounty campaign will pay with eth or bitcoin.
Your idea is very precise, I remember with the XUC exchange union project. If I'm not mistaken they pay campaign prizes using eth. This is very influential on token prices in the future, because there is no dump of the campaign participants and developers do not need to spend money to pump the price of coins. At ico the price of XUC is only $2.2 and the current price has reached $6.6 , very different from the project paying the campaign reward using its own coin. This is the best solution for the project to go according to plan and without any risk.
Here it is precisely noticed, so it will be much better and more favorable both to both parties. It is a pity that many do not think of it before.
I agree with you and your opinion is very precise and on point, many ICO's investors are the ones who are at risk in this dump in the market after the first listings in ICO''s im aware of this because I am also a bounty hunters but I don't dump that fast because I wait for the project to fully launch it's potential we can say that some bounty hunters are greedy and wants to earn money in a fastest and as soon as possible. That's the reason why many ICO's hate bounty hunters when it comes to the first listing of the ICO.
not a bad idea in general! there is only a problem that the developers are hoping for those who will not sell their bounty rewards immediately after receipt. It is more interesting to distribute tokens and not money
I agree with you. Previously, there were many projects that paid bounty hunters ETH or BTC instead of tokens. Now many organizers try to deceive bounty hunters with a reward and even professional coders offer to work for tokens.
that was right, ICO project should pay their bounty participant with ETH or BTC that they raised rather than the token itself, if this system not implemented and ICO keep paying bounty participant with their selling token i'm sure smart investor would eventualy lost interest in ICO.
There is a concerning trend over the last year to pay bounties in project tokens instead of BTC/ETH. This leads to market dumps almost always after the ICO due to bounty sell-offs.
In reality, it makes no difference for the team to pay in ETH instead of the token, and here is why: The amount raised in the ICO is usually in ETH. By sending 2% (or whatever the bounty was) from this project fund to bounty hunters, it makes little difference to the team, they still have 98% of their fund left. Furthermore, no market dumping can occur, and we no longer have to listen to the whining on telegram when the price drops below ICO like it always does.
Here is a fact: Nearly all tokens are dropping below ICO value when they hit exchanges during this bear market. The only people that are stupid enough to invest in ICOs at this time are new investors. Established investors will always wait for the token to hit exchanges and buy-up at a lower value during bear markets. This is because established investors realize a lot of free tokens get dumped after the ICO.
If ICO teams continue to payout bounties in their tokens, eventually all investors will cotton-on and no longer contribute to ICOs anymore. With everyone waiting for post-ICO exchange dumps, teams will no longer be able to raise any capital. As of now, retail investors aren't smart enough to realize this, but give them time, and they will, and this will effect the entire alt-coin sphere.
Simply payout bounties in ETH from the funds raised instead of the token. It literally makes no difference for the team, and it offsets the risk for everyone. This terrible trend of token payouts needs to end.
If i am not mistaken the only token ICO that did this is Oyster Token. The developer prefer to pay in Ethereum rather than token because he believes that his coin has a better value only to be dump by bounty hunters. Now the coin jump in unexpected high and have a stable price.In reality, it makes no difference for the team to pay in ETH instead of the token, and here is why: The amount raised in the ICO is usually in ETH. By sending 2% (or whatever the bounty was) from this project fund to bounty hunters, it makes little difference to the team, they still have 98% of their fund left. Furthermore, no market dumping can occur, and we no longer have to listen to the whining on telegram when the price drops below ICO like it always does.
Here is a fact: Nearly all tokens are dropping below ICO value when they hit exchanges during this bear market. The only people that are stupid enough to invest in ICOs at this time are new investors. Established investors will always wait for the token to hit exchanges and buy-up at a lower value during bear markets. This is because established investors realize a lot of free tokens get dumped after the ICO.
If ICO teams continue to payout bounties in their tokens, eventually all investors will cotton-on and no longer contribute to ICOs anymore. With everyone waiting for post-ICO exchange dumps, teams will no longer be able to raise any capital. As of now, retail investors aren't smart enough to realize this, but give them time, and they will, and this will effect the entire alt-coin sphere.
Simply payout bounties in ETH from the funds raised instead of the token. It literally makes no difference for the team, and it offsets the risk for everyone. This terrible trend of token payouts needs to end.
Do you mean Oyster Pearl (PRL) right? Damn! I miss that train. I heard that ICO was succeeded.
I agree with OP thought. Sometimes, paid by the token is stressful if the project becomes failed like PINDIFYtoday.
your idea is very exactly. I have joined some ICO projects and i realized that there are rarely investors invest in ICO now because they usually wait the falling down of tokens price when ICO finishes. I think this is the most suitable time for the change. If not, ICO will be died.
Ideas:
- smart contracts that lock up the collected Ether and releases a portion of the Ether at predetermined intervals, when reaching milestones (but how do you link real-world milestones to a digital contract?) or by community DAO mandate
- selling a smaller portion of the total amount of tokens, so that the issuing team has a bigger stake in the success of the token
- a variation of the lock-up idea: divide the ICO in phases and sell tokens when a new phase is reached, which could be after a predetermined amount of time, reaching a milestone or when approved by a DAO, for example when running out of money (but how do you monitor and control expenditure?)
The more I think about it the more my ideas start looking like shares with voting rights.
- smart contracts that lock up the collected Ether and releases a portion of the Ether at predetermined intervals, when reaching milestones (but how do you link real-world milestones to a digital contract?) or by community DAO mandate
- selling a smaller portion of the total amount of tokens, so that the issuing team has a bigger stake in the success of the token
- a variation of the lock-up idea: divide the ICO in phases and sell tokens when a new phase is reached, which could be after a predetermined amount of time, reaching a milestone or when approved by a DAO, for example when running out of money (but how do you monitor and control expenditure?)
The more I think about it the more my ideas start looking like shares with voting rights.
Your idea is very precise, I remember with the XUC exchange union project. If I'm not mistaken they pay campaign prizes using eth. This is very influential on token prices in the future, because there is no dump of the campaign participants and developers do not need to spend money to pump the price of coins. At ico the price of XUC is only $2.2 and the current price has reached $6.6 , very different from the project paying the campaign reward using its own coin. This is the best solution for the project to go according to plan and without any risk.
It just seems like such an obvious solution to all the problems everywhere I don't get why the practice is not more widespread. No more telegram chat flooding or fear of bounty dumps, and no need to delay bounty payouts out of fear of said dumps.
I also want to get paid in ETH instead of these tokens that doesnt have good value after some time,keeping tokens in months wont give you any assurance that they will have some good value in the future,you are indeed right the ICOs should pay us with ETH as they have millions of funds on hand bounty hunters are the key to success that is why we should be prioritize in the first place.
That is already known to be honest. The good projects should know that they are harming themselves when they pay bounties out in their own tokens, first of all because they know these tokens are going to be dumped. Second because they know bounty hunters can even sometimes gain a lot more tokens that investors, and investors who know this will stay away, or feel like an injustice has happened after bounties are distributed. Solve the issue and just pay properly.
Your idea is very precise, I remember with the XUC exchange union project. If I'm not mistaken they pay campaign prizes using eth. This is very influential on token prices in the future, because there is no dump of the campaign participants and developers do not need to spend money to pump the price of coins. At ico the price of XUC is only $2.2 and the current price has reached $6.6 , very different from the project paying the campaign reward using its own coin. This is the best solution for the project to go according to plan and without any risk.
I have had the same instance happening several times, and these days, I have been doing the 50:50 pattern for ICOs, which is more like, invest 50% during the ICO and if it keeps going up once it hits the exchange, good and fine, and if it drops far below the ICO, then I invest the remaining 50.The OP is very right and if investors start seeing this trend, then we may end up seeing just few investors in the future. The only excuse some of them are giving now is that it is a bear market, so there is really nothing that can be done.
There is a concerning trend over the last year to pay bounties in project tokens instead of BTC/ETH. This leads to market dumps almost always after the ICO due to bounty sell-offs.
In reality, it makes no difference for the team to pay in ETH instead of the token, and here is why: The amount raised in the ICO is usually in ETH. By sending 2% (or whatever the bounty was) from this project fund to bounty hunters, it makes little difference to the team, they still have 98% of their fund left. Furthermore, no market dumping can occur, and we no longer have to listen to the whining on telegram when the price drops below ICO like it always does.
Here is a fact: Nearly all tokens are dropping below ICO value when they hit exchanges during this bear market. The only people that are stupid enough to invest in ICOs at this time are new investors. Established investors will always wait for the token to hit exchanges and buy-up at a lower value during bear markets. This is because established investors realize a lot of free tokens get dumped after the ICO.
If ICO teams continue to payout bounties in their tokens, eventually all investors will cotton-on and no longer contribute to ICOs anymore. With everyone waiting for post-ICO exchange dumps, teams will no longer be able to raise any capital. As of now, retail investors aren't smart enough to realize this, but give them time, and they will, and this will effect the entire alt-coin sphere.
Simply payout bounties in ETH from the funds raised instead of the token. It literally makes no difference for the team, and it offsets the risk for everyone. This terrible trend of token payouts needs to end.
In reality, it makes no difference for the team to pay in ETH instead of the token, and here is why: The amount raised in the ICO is usually in ETH. By sending 2% (or whatever the bounty was) from this project fund to bounty hunters, it makes little difference to the team, they still have 98% of their fund left. Furthermore, no market dumping can occur, and we no longer have to listen to the whining on telegram when the price drops below ICO like it always does.
Here is a fact: Nearly all tokens are dropping below ICO value when they hit exchanges during this bear market. The only people that are stupid enough to invest in ICOs at this time are new investors. Established investors will always wait for the token to hit exchanges and buy-up at a lower value during bear markets. This is because established investors realize a lot of free tokens get dumped after the ICO.
If ICO teams continue to payout bounties in their tokens, eventually all investors will cotton-on and no longer contribute to ICOs anymore. With everyone waiting for post-ICO exchange dumps, teams will no longer be able to raise any capital. As of now, retail investors aren't smart enough to realize this, but give them time, and they will, and this will effect the entire alt-coin sphere.
Simply payout bounties in ETH from the funds raised instead of the token. It literally makes no difference for the team, and it offsets the risk for everyone. This terrible trend of token payouts needs to end.
Bounties are usually around 2% of the float and should be too small to tank the price post ICO if the project has built up a decent level of community support. The real culprit is the massive discounts offered to Pre ICO investors. I have seen Discounts as large as 70% over the ICO price. They can easily accept half the ICO price at the opening and still make huge profits.
It is very good to be pay in ethereum and bitcoin when a company or developer hire people to promote his project but we have to understand that payment in they own tokens will help promote their own projects in the market. I think it will be selfish for one to said we should receive ethereum instead of they own coins or tokens.
Paying in Ethereum will really make a lot of sense and at the end of the day, any bounty hunter with interest in the project will go to the exchange and buy rather than paying in tokens. However, since it is a norm and the devs are trying to also play safe, it would start giving investors different impressions about ICOs. There are so many tokens I have waited for recently to hit exchanges and then decided to buy them when they eventually dip, because it is becoming a normal trend.I am sure a lot of campaigns are not thinking about paying in eth and if care is not taken, most of the things you have listed out is all that would end up happening.
For instance, I invested in adbank recently, only to discover its rate few days later, lower than the amount I bought during the ICO, and luckily, I had some funds, which was what made me to buy more. Sure, the market will recover, but if I see a good project, what I keep telling myself is to just chill and wait for it to hit an exchange, see the market reaction and then buy. Bear market or not, it happens most of the time.
There is a concerning trend over the last year to pay bounties in project tokens instead of BTC/ETH. This leads to market dumps almost always after the ICO due to bounty sell-offs.
In reality, it makes no difference for the team to pay in ETH instead of the token, and here is why: The amount raised in the ICO is usually in ETH. By sending 2% (or whatever the bounty was) from this project fund to bounty hunters, it makes little difference to the team, they still have 98% of their fund left. Furthermore, no market dumping can occur, and we no longer have to listen to the whining on telegram when the price drops below ICO like it always does.
Here is a fact: Nearly all tokens are dropping below ICO value when they hit exchanges during this bear market. The only people that are stupid enough to invest in ICOs at this time are new investors. Established investors will always wait for the token to hit exchanges and buy-up at a lower value during bear markets. This is because established investors realize a lot of free tokens get dumped after the ICO.
If ICO teams continue to payout bounties in their tokens, eventually all investors will cotton-on and no longer contribute to ICOs anymore. With everyone waiting for post-ICO exchange dumps, teams will no longer be able to raise any capital. As of now, retail investors aren't smart enough to realize this, but give them time, and they will, and this will effect the entire alt-coin sphere.
Simply payout bounties in ETH from the funds raised instead of the token. It literally makes no difference for the team, and it offsets the risk for everyone. This terrible trend of token payouts needs to end.
If i am not mistaken the only token ICO that did this is Oyster Token. The developer prefer to pay in Ethereum rather than token because he believes that his coin has a better value only to be dump by bounty hunters. Now the coin jump in unexpected high and have a stable price. In reality, it makes no difference for the team to pay in ETH instead of the token, and here is why: The amount raised in the ICO is usually in ETH. By sending 2% (or whatever the bounty was) from this project fund to bounty hunters, it makes little difference to the team, they still have 98% of their fund left. Furthermore, no market dumping can occur, and we no longer have to listen to the whining on telegram when the price drops below ICO like it always does.
Here is a fact: Nearly all tokens are dropping below ICO value when they hit exchanges during this bear market. The only people that are stupid enough to invest in ICOs at this time are new investors. Established investors will always wait for the token to hit exchanges and buy-up at a lower value during bear markets. This is because established investors realize a lot of free tokens get dumped after the ICO.
If ICO teams continue to payout bounties in their tokens, eventually all investors will cotton-on and no longer contribute to ICOs anymore. With everyone waiting for post-ICO exchange dumps, teams will no longer be able to raise any capital. As of now, retail investors aren't smart enough to realize this, but give them time, and they will, and this will effect the entire alt-coin sphere.
Simply payout bounties in ETH from the funds raised instead of the token. It literally makes no difference for the team, and it offsets the risk for everyone. This terrible trend of token payouts needs to end.
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