Topic: The main factors pushing the ICO market down (Read 380 times)
The increasing number of projects that are not as expected and also a scam. of course if this keeps happening it will make more losses. and in my opinion this must be avoided. both of these factors make the quality of ico decrease
I see the main reason is that projects don't complete their obligations. Look, there aren't working product for mass adoption in crypto space and where are those money invested in ICO?
I think out of this all the reason, lack of a solid project is the main reason of collapsing the ICO. There's no good project anymore, every project is a copy paste shit, nothing new on the board.
The main obvious reason is the scams and other fraudulent activities that victimized many investors thats why ICO market was suffering in the all time low! The second reason was the bear market most of the investors are hesitant to invest due to the market condition.
It looks like this: friends gathered in the evening in the company, sat, rested and suddenly came up with the idea - and let's start the project. Let no ideas, no ways there is no implementation. After that, there is another ICO, in which the team does not understand who. And the idea itself seems to be interesting, but the ways of implementation are not clear at all. As a result, the team collects money from investors, and the project itself remains only an idea. which could not be implemented.
Seems you are using some sophisticated terms to explain why the ICO market is down, simply it was becoming too saturated with so many of them failed to meet investors expectations either through being an outright scam or failure to list on exchanges and when eventually listed was met with huge dump, more than 90% of ICO's had these problems and thereby making investors to lose fund. No one would want to invest in something that has high failure than success rate.
I think there are couple of stuff, one is definitely people thinking they won't earn as much as they used to from ICO (or it could be STO/IEO doesn't matter) and since they think they won't be making too much profit and even maybe lose money they decide not to invest neither, wouldn't make sense to just support a new coin with your money without making anything in return.
The second and the biggest I believe is that the regular coins that already exist were low already, so people decided to buy them and wait instead of investing into unknown coins, why would you risk your money into a coin you have never heard before when bitcoin went from 20k to 3k, just buy bitcoin and wait.
The idea is usually similar to when interest rates goes up in real life, business tend to keep their money in bank interest for guaranteed profit instead of becoming bigger companies by hiring more people and opening more stores.
The second and the biggest I believe is that the regular coins that already exist were low already, so people decided to buy them and wait instead of investing into unknown coins, why would you risk your money into a coin you have never heard before when bitcoin went from 20k to 3k, just buy bitcoin and wait.
The idea is usually similar to when interest rates goes up in real life, business tend to keep their money in bank interest for guaranteed profit instead of becoming bigger companies by hiring more people and opening more stores.
1. Revaluation of the current project cost in the ICO phase
2. Inflationary factor, a large percentage of tokens not participating in the distribution
3. The project and the Team do not have significant incentives for development, money is received — you can relax.
the ICO market went down due to the lack of trust from the investors, lack of experience from the team's, no transparency and too many scams increasingly alarming. That is when we have to know that it was crystal clear that a regulation is needed2. Inflationary factor, a large percentage of tokens not participating in the distribution
3. The project and the Team do not have significant incentives for development, money is received — you can relax.
Perhaps this is the reason why IEOs is more popular than ICOs. IEOs more trusted by investor because all managed by exchangers and the team focus only on the project. I am agree that regulation needed for cryptocurrency market because its give investor confident
This may not apply to all project teams and managements. Some project managements and teams are so much at work to make their projects a big one even after they collect funds and their tokens hit exchanges. But some projects are so much lazy. The project success is entirely in the hands of the management and team. So they must be active and hard working to make their projects a success.
It looks like this: friends gathered in the evening in the company, sat, rested and suddenly came up with the idea - and let's start the project. Let no ideas, no ways there is no implementation. After that, there is another ICO, in which the team does not understand who. And the idea itself seems to be interesting, but the ways of implementation are not clear at all. As a result, the team collects money from investors, and the project itself remains only an idea. which could not be implemented.
1. Revaluation of the current project cost in the ICO phase
2. Inflationary factor, a large percentage of tokens not participating in the distribution
3. The project and the Team do not have significant incentives for development, money is received — you can relax.
the ICO market went down due to the lack of trust from the investors, lack of experience from the team's, no transparency and too many scams increasingly alarming. That is when we have to know that it was crystal clear that a regulation is needed 2. Inflationary factor, a large percentage of tokens not participating in the distribution
3. The project and the Team do not have significant incentives for development, money is received — you can relax.
All these and other factors are the result of one thing. In short: the pursuit of fast money.
ICO has become inflation after the success of 2017, there are very few good ICOs with serious working teams while fraudulent, shit, and low-quality ICOs flood the market. Most of ICO is simply created to take money from investors, at the moment there is no one interested in ICO.
It's the expectation of the investors that makes the price goes down. Once a project makes a move that dissatisfies some of the members, FUD will start to come out in the community and will ruin the overall health of the project in the long run. And we can't also ignore the fact the most investors are in for a quick profit.
1. Revaluation of the current project cost in the ICO phase
2. Inflationary factor, a large percentage of tokens not participating in the distribution
3. The project and the Team do not have significant incentives for development, money is received — you can relax.
2. Inflationary factor, a large percentage of tokens not participating in the distribution
3. The project and the Team do not have significant incentives for development, money is received — you can relax.
People invest in ico because they think they will buy cheap coin and the ico team will work on the project team to make the coin valuable.
But when an ICO is made to only collect money from the people and forget about the project afterwards people will lose interest in the ico. Unfortunately this is being done by more than 90% of the ico and that's the biggest reason of ico market being down.
people are tired of losing money and time in these ICOs
only thing i do saw on whats ICO is lacking.Pushing the market down? Due to various lots of scam projects out there and
same as said above,people are already tired on this one.
the answer can be summarized as follows:
FAKE TEAM
Tourco online - SCAM - FAKE TEAM - Stealing people's identity
Piedpipercoin = SCAM - fake team / impersonating real www.piedpiper.com
Plagiarized whitepaper
FLEXSTAY [FXS] - plagiarized whitepaper!
Blue Hill Mining - Plagiarized Whitepaper
people are tired of losing money and time in these ICOs
FAKE TEAM
Tourco online - SCAM - FAKE TEAM - Stealing people's identity
Piedpipercoin = SCAM - fake team / impersonating real www.piedpiper.com
Plagiarized whitepaper
FLEXSTAY [FXS] - plagiarized whitepaper!
Blue Hill Mining - Plagiarized Whitepaper
people are tired of losing money and time in these ICOs
ICO has bad faith in 2018. Now ICO has a rival, IEO. IEO is more popular even though this is only a difference in fundraising methods.
both have similarities to making tokens, hyip then dumps.
I'm not sure the ICO will last for the next few years.
both have similarities to making tokens, hyip then dumps.
I'm not sure the ICO will last for the next few years.
1. Revaluation of the current project cost in the ICO phase
2. Inflationary factor, a large percentage of tokens not participating in the distribution
3. The project and the Team do not have significant incentives for development, money is received — you can relax.
2. Inflationary factor, a large percentage of tokens not participating in the distribution
3. The project and the Team do not have significant incentives for development, money is received — you can relax.
Or money they received, then they can do exit scams.
And that is the sad stage of many ICO projects right now, too many scammers, projects are just hype with no real life usage, no fundamentals, and just pure pump-and-dump schemes.
And even though we have high lighted the flaw of their business model, still they hasn't change a bit and since now we have IEO's, pretty sure they will die slowly.
First there are lots of scam projects rolling out everyday and that alone is discouraging a lot of people from investing in ICO because whenever ICO is mentioned, they all feel like this is another scam project as well. So that alone is causing bad names for icos and is making the market drop badly. Then another thing is all these pump and dumpsters. Omg these ones are very annoying trust me, sometimes you see a project and you believe this is a good project, then you invest in it only for it to end up being pumped and dumped and you will just lose your money like that.
You forgot the main factor is that investors are sick of these kind of projects and ICOs anymore. It has been a bad year for 2018 and together a lot of scam projects were busted so investors confidence with ICO has now gone.
There is IEO but I think same fate will be shared but as long as these exchanges will be liable for these projects and they are responsible for choosing what project to support with, well that's what the investors like.
There is IEO but I think same fate will be shared but as long as these exchanges will be liable for these projects and they are responsible for choosing what project to support with, well that's what the investors like.
1. Revaluation of the current project cost in the ICO phase
2. Inflationary factor, a large percentage of tokens not participating in the distribution
3. The project and the Team do not have significant incentives for development, money is received — you can relax.
2. Inflationary factor, a large percentage of tokens not participating in the distribution
3. The project and the Team do not have significant incentives for development, money is received — you can relax.
4th thing;
They don't have actual usage.All is imaginary.Yes,they do have great plans but making it as a reality would always remain on imaginary
that's why most of them do fail.They might hit up on exchangers but they do die later on.No working product as promised.
Actually if the people behind are really enjoying the project or at least think that their project will disrupt the target niche or industry, then they don't think of incentives but rather how the will contribute. If they relax, then it's their downfall. Or maybe they don't really think that the project has a bright future if they don't improved on it.
Unfortunately, even those people behind the said project are enjoying the project, as soon as they received decent money during their ICO, we can't hide the fact that they are relaxed and not pressure at all.
One example is the CTX project that became a hype in bounty section (on which bounty managers became scammers). After reaching their hardcap target, no such big development happen later on and now currently turned into dead coin. In here, looks like money received didn't push them to become more focus in the project but instead pay for a party or what.
Another reason is the 2018 dominance of the bear market which affects all coins/tokens in the crypto market. Luckily, some new projects back then survived but surely it will have a hard time to catch again their established all-time high price or never it will reach again.
It's their reputation imo as I believe majority of the investors are driven by hype which has been sinking continuously for a long time now because of the huge number of scams and those which suffered greatly because of the bear market causing their coin/token to fall below the ICO price.
1. Revaluation of the current project cost in the ICO phase
2. Inflationary factor, a large percentage of tokens not participating in the distribution
3. The project and the Team do not have significant incentives for development, money is received — you can relax.
2. Inflationary factor, a large percentage of tokens not participating in the distribution
3. The project and the Team do not have significant incentives for development, money is received — you can relax.
I believe reasons for this ICO dump is SEC and its regulations not controlling the fund securities of investors.
We need to choose the ICO by checking their potential market presence and every aspects while we are investing but we people are missing out everything completely.
Finally ICO scammers, these aspects are pushing the market down.
It is not really a mystery why icos are not recovering at the same speed that the rest of the market is recovering, most icos are either scams or projects that will never reach their stated goals and when you see the same pattern happening several times people begin to lose confidence that they can get a return on their investment, if someone came to me saying they were going to invest in an ico my first reaction will be to try to stop them and make then invest in some of the top coins in the market.
It is true the profits are not going to be as good but it is way better than to lose all your money just because you made the mistake in believing the words from the developers of a coin that were really scammers.
It is true the profits are not going to be as good but it is way better than to lose all your money just because you made the mistake in believing the words from the developers of a coin that were really scammers.
1. Revaluation of the current project cost in the ICO phase
I don't know what you mean by re-evaluation.
2. Inflationary factor, a large percentage of tokens not participating in the distribution
Of course it will take some time, specially if the token is like billions in supply.
3. The project and the Team do not have significant incentives for development, money is received — you can relax.
Actually if the people behind are really enjoying the project or at least think that their project will disrupt the target niche or industry, then they don't think of incentives but rather how the will contribute. If they relax, then it's their downfall. Or maybe they don't really think that the project has a bright future if they don't improved on it.
1. Revaluation of the current project cost in the ICO phase
2. Inflationary factor, a large percentage of tokens not participating in the distribution
3. The project and the Team do not have significant incentives for development, money is received — you can relax.
I see ICO coin holders can't relax, how can it be relaxed?2. Inflationary factor, a large percentage of tokens not participating in the distribution
3. The project and the Team do not have significant incentives for development, money is received — you can relax.
coin dump when registered on the stock exchange, and investors lose money.
this is the bad side of ICO
1. Revaluation of the current project cost in the ICO phase
2. Inflationary factor, a large percentage of tokens not participating in the distribution
3. The project and the Team do not have significant incentives for development, money is received — you can relax.
2. Inflationary factor, a large percentage of tokens not participating in the distribution
3. The project and the Team do not have significant incentives for development, money is received — you can relax.
Jump to: