ICO bountiess are a hazardous threat to the value of Bitcoins and Ethereum.

Jackie69

brand new

Activity: 0

Merit: 0

Quote from: d5000 on October 05, 2018, 06:53:17 PM

Maybe sometimes there could be a little effect like you describe, e.g. in a moment where several big ICOs are getting listed simultaneously on an exchange after the bountys are paid out.

But on the other hand: If the companies financing themselves via ICOs accept mainly Bitcoin and Ethereum for the payment of the tokens, then they also create buying pressure - as you have to purchase BTC or ETH to pay the ICO tokens.

The whole impact of an ICO depends on the proportion destined to bounties. If it's low, then the impact on BTC/ETH price is negligible, while if it's too high, then there could be a higher impact. But a high proportion isn't very attractive for ICO projects, because it means that there will be constant selling pressure for the token, and the token would be less "desirable" for potential buyers. So the incentive for projects to dilute the ICO with a disproportionate amount of "bounty tokens" isn't very high.

CASTIEL05

member

Activity: 560

Merit: 13

I do not have any information about the current fall of bitcoin but it is not the bounties that affect really the price. Do not accuse bounties because it is the way to help people to earn cryptocurrency like me. The value of bitcoin and ethereum are volatile. They have the fastest fluctuation when it comes to price. Hunters are just small investors in market, obviously.

M4NDELL

member

Activity: 221

Merit: 10

It is unlikely that bounty hunters have such a strong influence on the change in the course of Bitcoin and ethereum. Having received a reward from the bounty, some of them will sell their coins today, some tomorrow, some in a year, and some will be left for long-term storage. In order for the crypto rate to fail, a massive sale of coins is needed in a very short time.

rosemary4u

jr. member

Activity: 392

Merit: 1

There are many contributing factors that are hazardous to bitcoin and Ethereum, not all bounty hunters indulge in activities such as dumping of coins as soon as they are listed. There are many situations were bounty hunters have contributed immensely to the development of the crypto world by inviting reputable investors through their advertisements.

hahay

legendary

Activity: 3486

Merit: 1055

Leading Crypto Sports Betting & Casino Platform

Yes, most of the bounty hunters will immediately sell the tokens they get from ICO prizes, the mass sale will certainly be a dump. But some of them will only hold it if they see the price is not worth it. So far I still hold many tokens and I don't even know the development of the price of the token that I hold.

johnwest

hero member

Activity: 1106

Merit: 503

BabelFish - FISH Token Sale at Sovryn

I wouldnt agree with the calculation part and also that most of the bounty hunters sell their tokens. Most of the bounty hunters are crypto lovers and know that sooner or later the value of those tokens will be increasing and they may get a better value.

Babylon

hero member

Activity: 938

Merit: 500

CryptoTalk.Org - Get Paid for every Post!

I don't really think that the 1-2% of the total circulation would affect the price .
And sometimes when we promote it there would be a new investor so basically there would be more demands and the price would increase ,

kaya11

full member

Activity: 1344

Merit: 110

SOL.BIOKRIPT.COM

I have thought about the way ICO receives funds via BTC or ETH, and one moment I thought that they were just using ICOS to pump these two. It is better to use fiat right? What is the advantage of using eth or btc to purchase them? Or one answer is that the developers of the ICO are using those funds to trade or someway the could use to funds to multiply them.

Tramle091296

full member

Activity: 462

Merit: 100

Quote from: Stedsm on October 05, 2018, 06:21:36 PM

- Now, when these bounties are distributed (few before and others after getting listed on at least one reputed exchange), these bounty hunters start taking their money out either in BTC or ETH (based on the available pair on exchange).

- Finally, they sell their BTC/ETH over the markets and repeat the process in each bounty.

- I believe the value of both of these major crypto is vulnerable to dumps happening by most of the big bounty hunters and if we calculate, there are tens of hundreds of ICOs popping up every day and even if we consider at least $10k to be redeemed by its bounty hunters through ICO, we may calculate and see that the markets are getting dumped with an average of a million bucks daily.

But they can affect also the price of the btc and ethereum because on the value that they are holding i respect your point and we see some Advantages and Disadvantages of the ICO'S but the ICO'S who successfully get a lot investors which helps on the value of coin grow more which helps both the ICO'S and also the investors in crypocurrency.

Indrawan77

hero member

Activity: 1274

Merit: 516

Quote from: walemil on October 08, 2018, 08:27:11 AM

I cannot agree with you completely on your position that the bounty hunters are responsible. What fraction is allocated to bounty? What assurance do you have that majority of the bounty hunters don't keep their coins far longer than some investors whose aim is to buy and dump? Some bounty hunters even buy more coins in addition to the bounty reward.

I agree, I think bounty hunters only got small portion of the btc or eth circulation, and project bases on btc and eth will make the transaction volume of the coins become bigger, and maybe can caused volatility when the ICO listing on exchanges, but I don't see volatility as a hazardous threat, the one that become threat is the pump and dump by big whales and manipulators

walemil

full member

Activity: 448

Merit: 100

I cannot agree with you completely on your position that the bounty hunters are responsible. What fraction is allocated to bounty? What assurance do you have that majority of the bounty hunters don't keep their coins far longer than some investors whose aim is to buy and dump? Some bounty hunters even buy more coins in addition to the bounty reward.

stompix

legendary

Activity: 2912

Merit: 6403

Blackjack.fun

Quote from: Stedsm on October 05, 2018, 06:21:36 PM

- All these ICOs mostly use BTC and/or ETH as primary payment systems instead of going for fiat alone, which is good for their project as the transactions and valuation remains public.

That is not true, the biggest and more serious projects receive a lot of private investments that are done via bank transfers.

Quote from: Stedsm on October 05, 2018, 06:21:36 PM

- Now, when they collect everything, they also do marketing campaigns aside to keep their project alive and under "catch investors' eye" situation.

Some of them, the rest don't bother, they let the ones that fell in the trap to shill in order to keep their investment intact till the dump.

Quote from: Stedsm on October 05, 2018, 06:21:36 PM

- ~1% of the (possible) total circulation goes to this bounty.
- Now, when these bounties are distributed (few before and others after getting listed on at least one reputed exchange), these bounty hunters start taking their money out either in BTC or ETH (based on the available pair on exchange).
- Finally, they sell their BTC/ETH over the markets and repeat the process in each bounty.

Not going to argue over the percentages but the biggest projects with large funds raised are not into bounty stuff, lately I've seen more and more ealizing that it's stupid to have your message re-twitted and shared by thousands of fake profiles nobody is following for real.

Quote from: Stedsm on October 05, 2018, 06:21:36 PM

- I believe the value of both of these major crypto is vulnerable to dumps happening by most of the big bounty hunters and if we calculate, there are tens of hundreds of ICOs popping up every day and even if we consider at least $10k to be redeemed by its bounty hunters through ICO, we may calculate and see that the markets are getting dumped with an average of a million bucks daily.

You forget that investors also need to buy those ETH and BTC in order to participate in in the ICOs, otherwise, we would run out of coins with which to invest.

wizardcrypto

copper member

Activity: 210

Merit: 2

www.daxico.com

I totally agree with you mate but if you remove bounty Hunter from the ICO . The ICO will never reach the targeted percentage of people they want to get . Dumping or pumping a coin is a traditional thing in the trading of currency whether Fiat or cryptocurrency. What makes the project not to accomplish their said vision on their white paper is inconsistency in marketing the coin vision to the public ,they do marketing only at ICO stage. This is the challenge. Since Crypto is yet to be adopted not everybody is aware of Cryptocurrency.

TheClownSong

sr. member

Activity: 1428

Merit: 251

I think Bounty reward dont have relation with bitcoin or ethereum price. I think its very different because its another coin or token. Bitcoin or ethereum maybe have new competitor but market will decide the best to invest

Bittalk12

member

Activity: 434

Merit: 11

How can you say that ICOs are a hazardous threat to the value of Bitcoins and Ethereum when these two are used as a payment to grab an ICO's altcoin? The demand for BTC and ETH will rise because those investors need to convert their fiat currency to BTC or ETH to be invested to that ICO. The biggest number of dumpers goes to miners because they are the one who needs fiat currency to support or pay those bills for consuming too much electricity.

Desmozgenes

full member

Activity: 392

Merit: 107

Quote from: mklost on October 05, 2018, 06:35:13 PM

I totally disagree with you mate. Though I am a bounty hunter replying to this thread, because Your idea about bounty hunter is not well. Most of the hunters are not a dumper now, they are holding many coins. I can ensure you, if you check bounty hunters wallet then you will see they are holding some good coins. And the real truth is, Bounty hunters are becoming ICO investors too, they know which project will be good or bad! And Presale investors, Miners are dumping coin and Bitcoin. 1% Rewards you seem very big and they are dumping lots of bucks? You are wrong here.

I completely agree with this.Much bigger problem are those private sale investors and whatnot and get 100%+ bonuses ,than bounty hunters who get maybe 1% of the token supply.And as you said ,many of them are still holding bounty tokens,as lately all tokens that got listed went down alot,with those big investors dumping them asap.

ongkok87

sr. member

Activity: 1120

Merit: 256

Quote from: squatter on October 07, 2018, 02:49:38 AM

People say that ICOs are bad for the same reason, since the ICO companies dump their fundraised coins on the market. But that only considers the distribution side, after the ICO is done. As d5000 points out, ICOs actually create buying pressure too, since the ICO investors need to purchase BTC/ETH before they can invest. I believe that was the market dynamic underlying Ethereum's massive rise in price last year -- so many ICOs were raising funds in ETH.

Quote from: CodyAlfaridzi on October 06, 2018, 08:36:48 PM

ICO is harmful because most ICOs are only quick rich scheme for the developer. Most of them don't deliver their promise, they don't continue their project after receiving the ICO money.

True, but that's the nature of startup investment. Most startups fail for whatever reason. It's a high risk, high reward investment environment.

therefore the ICO provides a promising investment place but the risk is also large. and to invest from now on must be careful again so that things that are not desired do not happen

talkbitcoin

legendary

Activity: 1372

Merit: 1032

All I know is that I know nothing.

as a matter of fact the biggest problem that ICOs have created has absolutely nothing to do with the price!
this biggest problem is about the fact that they made cryptocurrency concept look like a joke where you just go to for making money from pump and dumps. any newbie without any understanding of anything has been creating a token by reading a small walkthrough online and adding that useless token to a huge number of other useless tokens.

efxtrader

full member

Activity: 924

Merit: 100

GoMeat - Digitalizing Meat Stores - ICO

I dont think bounty or new ICOs hurt on bitcoin price. People invest on what they want but bitcoin still favorite investment in cryptomarket. I am believe new ICOs and new coin will creating healthy competition for market and for investor.

squatter

legendary

Activity: 1666

Merit: 1196

STOP SNITCHIN'

People say that ICOs are bad for the same reason, since the ICO companies dump their fundraised coins on the market. But that only considers the distribution side, after the ICO is done. As d5000 points out, ICOs actually create buying pressure too, since the ICO investors need to purchase BTC/ETH before they can invest. I believe that was the market dynamic underlying Ethereum's massive rise in price last year -- so many ICOs were raising funds in ETH.

Quote from: CodyAlfaridzi on October 06, 2018, 08:36:48 PM

ICO is harmful because most ICOs are only quick rich scheme for the developer. Most of them don't deliver their promise, they don't continue their project after receiving the ICO money.

True, but that's the nature of startup investment. Most startups fail for whatever reason. It's a high risk, high reward investment environment.

Topic: ICO bountiess are a hazardous threat to the value of Bitcoins and Ethereum. (Read 529 times)