if there is an effect it is going to be on Ethereum price and any other altcoin that are "tokens" for the ICOs not another third party cryptocurrency (bitcoin for example) that they may use for investment only. in other words a the end of the day when ICOs fail, bitcoin still is a currency and continues having its usefulness but those tokens such as ether become useless since there is no other usage for them apart from being a fuel for ICOs.
as for the dumping and the effects on the price of other coins, i can see that but it won't be specific to ICO tokens. any altcoin that is bought with bitcoin and is dumped by the bag holders to exit using bitcoin will affect bitcoin price.
Topic: ICO bountiess are a hazardous threat to the value of Bitcoins and Ethereum. - page 3. (Read 529 times)
October 06, 2018, 02:43:04 AM
October 06, 2018, 02:31:53 AM
I do not think that the value of one million dollars a day will pose a danger to Bitcoin, but these campaigns still pose a risk in the short term.
Remember what happened to Ether when it dropped dramatically and forced all cryptocurrencies to correct.
Perhaps the indiscriminate behavior of these ICOs leads to speculation in the price but in the long term will only be a small drop.
There are also regulation and awareness that will limit their impact.
Remember what happened to Ether when it dropped dramatically and forced all cryptocurrencies to correct.
Perhaps the indiscriminate behavior of these ICOs leads to speculation in the price but in the long term will only be a small drop.
There are also regulation and awareness that will limit their impact.
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.
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.
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.
October 05, 2018, 06:25:33 PM
a million bucks daily? that is nothing compared to how much miners are constantly dumping on the market.
Its probably not even one million a day, a lot of bounty hunters hold their tokens, they don't just dump for btc.
Anyways all of this is fine with me, keep the regulation out of crypto.
Its probably not even one million a day, a lot of bounty hunters hold their tokens, they don't just dump for btc.
Anyways all of this is fine with me, keep the regulation out of crypto.
October 05, 2018, 06:21:36 PM
Here, I'm not against the concept of advertisement and marketing, but to my knowledge, these bounties do harm the value of BTC and ETH. Let me show you how:
- 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.
- Now, when they collect everything, they also do marketing campaigns aside to keep their project alive and under "catch investors' eye" situation.
- ~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.
- 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.
- 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.
- Now, when they collect everything, they also do marketing campaigns aside to keep their project alive and under "catch investors' eye" situation.
- ~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.
- 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.
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