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Topic: Is it normal for ICO prices to drop once they're listed on the exchange? (Read 811 times)

full member
Activity: 686
Merit: 131
It totally depends on the market.

The last three months, it has been normal for coins to drop to very low prices.
That is because the overall market has been very sluggish and icos have not been raising that much money.
They then release on smaller exchanges (big exchanges cost a lot of money to be listed on) where there is no volume so the price just drops.

However, in a bull market situation, newly listed coins can get pretty insane, especially the very day they are listed.
Take Appcoins for example.
They did their ico right in the middle of last nov./dec. bull run and sold out pretty fast.
They were then able to be listed on binance and the price was skyrocketing to $2 to $3 per coin (ICO price was around .15 cents I believe).

So for now, I would be hesitant to jump in on icos.

The market is showing signs of growth, so if you find an incredibly solid project that will end their ico around end of may or early june, than that could be good timing.
legendary
Activity: 3038
Merit: 1024
Leading Crypto Sports Betting & Casino Platform
Yes it is normal,as you can see most of the investors are dumping the supply,added by some bounty hunters that causes a lot of problems to the token's value.That is why i am going to dump these coins after these people dumped their tokens so that i could maximize the profits ,you should be having some grace period when you are going to take profits with the ICO tokens.
It should take the more time to go, I was holding some coins and I haven't sold them all because there were so many thing need to be considered just like so many bounty hunters were still in awaiting list to dump their coin. I just take more time until the price will be recovered again.
hero member
Activity: 2002
Merit: 535
this is normal for projects with weak background. Bounty hunters dump the tokens because they didn't pay anything, plus pre-ico token owners payed only part of the price, so first investors on exchange cannot do anything with this
Majority of the tokens are not great projects too and they will eventually die off, if the project is solid the price will increase in the future, even if the bounty hunters sell off the coins and we usually see the price going down when it enters the exchange, but there is a sell off from the team too, it all depends upon how good the team behind the project .
full member
Activity: 518
Merit: 100
Well I think it is just uncertainties due to the market volatility of the cryptocurrencies. It do usually happen that the ico price is bigger than the price of a token upon being released in the market which yields to partial loss of profit of the ico investors. But after a couple of months, the price of the ico tokens are increasing so holding ico tokens still is advisable.
member
Activity: 204
Merit: 10
Yes it is normal,as you can see most of the investors are dumping the supply,added by some bounty hunters that causes a lot of problems to the token's value.That is why i am going to dump these coins after these people dumped their tokens so that i could maximize the profits ,you should be having some grace period when you are going to take profits with the ICO tokens.
full member
Activity: 321
Merit: 102
If all the market is in a bad period and every coin is going down then it is normal because it doesn't matter if it is a new or old coin or how popular it is because every coin goes down when bitcoin starts to go down. If the market is green and prices are moving slowly upwards then it's not normal at all for the price to go down and this means something goes wrong.
newbie
Activity: 13
Merit: 0
this is normal for projects with weak background. Bounty hunters dump the tokens because they didn't pay anything, plus pre-ico token owners payed only part of the price, so first investors on exchange cannot do anything with this
member
Activity: 291
Merit: 15
It is very normal and this happens everytime. If you observe, many ICOs have really low price once they are listed because many bounty hunters have suddenly and immediately sell their coins once they receive it.
Bounty hunters are small part and hardly they can cause price to go down.
Early investors(pre ico) are receiving bonus and probably that is the reason why price drops down.
full member
Activity: 476
Merit: 100
Recently the majority of ICO projects after listing on the exchange become cheaper in comparison with ICO price. I consider that it is connected with falling of all cryptocurrency market. Now there aren't enough projects which after listing give profit to investors at once. Therefore now it is necessary to approach the choice of ICO attentively more than ever earlier not to lose the money!
jr. member
Activity: 182
Merit: 2
dApps Development Automation Platform
So it seems a lot of ICO's are running with $1 per coin during the ICO - but then dropping well below that price once they're listed on an exchange.

Is this a normal thing for an ICO at least initially while they're working on getting their project fully operational?

Are they setting the $1-$2 a coin so they can make sure they're fully funded to get the project started and on it's way vs trying to sell shares for pennies or dimes?

But why wouldn't the price of an ICO hold at what that price was?  Just because initial founders are dumping their coins to get some cash out and forcing the hand/price to go down based on supply & demand?

It is very normal and this happens everytime. If you observe, many ICOs have really low price once they are listed because many bounty hunters have suddenly and immediately sell their coins once they receive it.
full member
Activity: 275
Merit: 101
Have you ever seen anything normal in a crypto world? In my opinion, everything is not normal, changes rapidly, develops very fast, falls and rises. It's like an increased synthesis.

The price of ICO really falls after listing on the stock exchange. However, if in a team people who have a brain and they really value their project, they give out coins gradually. First of all, small buyers receive it. Then a month later - the average buyers, then later - bounty participants. Even after 3 months unlock the tokens of large investors and only a year later - coins that belong to the developers. With such a chain, the price does not collapse catastrophically. It fluctuates and in general even shows growth, sometimes large.

And, if all coins are thrown out at once, and the project itself is not very promising and reliable. That fast trade will simply bury it in its very inception.
sr. member
Activity: 994
Merit: 250
Hello, an interesting question, the fall in the rate of the token after the ICO is a normal phenomenon since many tokens are sold by the bounty program participants thereby lowering the token's rate down, it is necessary to wait until the course stabilizes, and then trade the tokens
member
Activity: 140
Merit: 10
OPEN GAMING PLATFORM
I think the main reason for the fall in coin prices after entering the stock market is Bounty hunters. After receiving coins for their work, they want to sell their coins very quickly and make a profit. Therefore, when they sell a large number of coins, the price goes down immediately.
sr. member
Activity: 518
Merit: 250
The reason for the decrease in the price of the coin bought at ICO is that after the coin is released to exchanges, early investors and bounty hunters (and other ones which received tokens as payment for preparing and promoting ICO) are actively selling it. Many investors bought coins with large discounts (50% or more) and even selling below the price of the ICO, can get a good profit.
full member
Activity: 336
Merit: 103
Proof-of-Stake Blockchain Network
The most common situation when a coin is traded below ICO price right after the listing is because huge bonuses for private or presale investors. I knew several projects which offered up to 100% bonus for early investors. So they get their profit even selling far below ICO price. That's why I usually check if a project gave any bonuses on presale.
full member
Activity: 364
Merit: 106
It is normal for the price of a coin to drop, especially if it is just recently listed. People who had received their coins tend to dump it during the first day, since they fear for a bigger loss in case the price drop. This belief is mainly because of the competition in the market and rhe fact that a new coin hasn't really fully established itself in the market that is why it is difficult to gain a continuous increase in coin price.
member
Activity: 742
Merit: 12
Yes, its normal to dump the price when coin get listed for the first time. After a few weeks, they should improve their position. There are some points to remember, in every project, you'll see some panic sellers. Some get's free coins from Airdrops, some get from bounties. Most of them sell coins when they get time the first time, this makes the new listed coin price down.
jr. member
Activity: 87
Merit: 3
From my experience the ones that tanked after the ICO are generally the overly hyped ones with huge bounty campaigns and/or bonus structures like Monetha and Kickcoin.   The under the radar projects with verifiable businesses and teams generally go up after the ICO as people start to learn about them after they hit the market.

This is the most practical advice for you OP and I completely agree to this. I also think that genuine projects will benefit from listing and grow because of promotion from current investors.
member
Activity: 258
Merit: 12
Yes it is normally what will happen if most of the investors and hunters dumped that token,which is why we need to hold our tokens until these people are done dumping huge amount of supply.I am giving 6months period from each tokens that i have received from bounties and ICOs so that i could maximize the potential profits from these campaigns.
member
Activity: 362
Merit: 10
It's like you destroying na ourcome of the company and it's useless for bounty hunters to dump all of it. If you have a quality project then hold is very required. Im not selling anything in my wallet I just sell it when bull run comes.
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