Topic: What causes tokens been dumped after a successful ICO. - page 8. (Read 946 times)
I think the reason is because nobody bought it. even though the project was good but there was no demand it was like a big dump. so it doesn't matter who sells the tokens first. because the reason is that nobody bought the token after listing.
I want to agree that private investors dump more than bounty hunters can do, infact most of the projects these days don't give bounty hunters their rewards until the price has dump to nothing. I guess locking the token of private investors will be the best like some projects are doing now.
There were a lot of publications on this occasion. Always after a successful ICO there is a short-term pump. Then, the cryptocurrency rate drops sharply and it takes a very long time for the cryptocurrency to grow again to the previous values or higher. Jan balina published a very cool schedule on this topic, but I couldn't find it.
It's about trading strategy. If you are sure that the project you are investing in is a good project, then you might dump and buy back later when the price is low.
Why would you hold if you are sure that the dumping is inevitable? Both smart investors and smart hunters dump and buyback.
Why would you hold if you are sure that the dumping is inevitable? Both smart investors and smart hunters dump and buyback.
Yes you are on point i will add one two more points in your topic, one is that from last one year what ever the tokenomics or even the icos without bounty the prices have still dumped so i guess its about overall market volume and demand in the market secondly in last one year bounty hunters have not received any decent reward so question of dumping in big numbers just gets diluted. I think this question and debate will continue till there is ico and bounty.
In short, everyone is just chasing for the profit and don't want to miss the train of dumping.
It's widely known that the biggest dumpers are presale and private investors who get big discounts in ICOs. In your example, you are talking about one investor who gets a 25% bonus, which is relatively low considering that there are ICOs where early investors can get 50% or higher bonuses. They can easily sell their tokens, get profit and buy again at a much lower price.
it is wrong to believe that ICOs that have a successful sales,TGE, testnet,mainnet, ETC are been dump by bounty hunters and airdrops owners. whoever come up with that fact got it all wrong.
i strongly believed that TOKENs are been dump by the same investors that gained lots of bonus of their investment should be held responsible. Never and never will you put it on the hunters. it is business people. everyone wants to make money very quick.
My reason below:
A project minted one millions tokens and draws out plans for sales and distribution with this format:
50,000 for bounties and airdrops
700,000 for sales
100,000 for managers, ambassadors, legal team, and the rest.
150,000 for research, contest giveaways and probably burnt the remaining tokens and bla bla bla.
1 token= 0.001eth
minimum investment=0.1 therefore 0.1eth = 100 tokens
this is use case scenario)
ICO sales promises a tangible % of the minimum investment. eg 25% of what u invest) for 1st sales. if you invest, 1ETH, you get, 1000 token Plus 250 tokens= 1250 total.
10% of what you invest for 2nd sales. if you invest 1Eth, you get 1000 tokens plus 100 tokens = 1100 total
For the bounties and airdrops, there is every tendency that the highest earner for a bounty goes home with 2000 while the rest battles with the remaining 48,000 tokens.
there is also a probability that there will be left over at the end of the bounty distribution which the bounty manager sends back to the project owners.
it is very clear that this business is all about the more you invest, the high change of getting more tokens.I believe that since an investor can spend over 5,6 or more eth to gain huge bonus from his investment. he wastes no time selling off his goods immediately it hits the market and knowing perfectly well that he is on the profit.
EG
he spend 2 ETH to get 2500 tokens. (500 tokens are bonus) . The token hits the market at the price of 0.0005eth if we can start from that price.
he choose to sell back 2200 tokens at 0.000987 to get 2.1736ETHEREUM.
He gains 0.1736 from this sales and still a left over of 300 tokens in his wallet.
There is a probabilty that the price might go up. he might sell if he wishes or he can keep for the long term strategy.
While a bounty hunter that earns an average of 1,200 to 800 tokens manages to sell off at 0.000987 (if he earn 1200) to get 1.184eth which covers stress time, internet bills and miscellaneous stuff.
Also remember that while an investor is free to DUMP off his token and move on to another project, the hunter's token is luck up for months.
SO i believed that tokens are dumped in the market by the same investors once they are sure of profit in order to move to the next ico in the market. Not the bounty hunters or airdrop holders.
i strongly believed that TOKENs are been dump by the same investors that gained lots of bonus of their investment should be held responsible. Never and never will you put it on the hunters. it is business people. everyone wants to make money very quick.
My reason below:
A project minted one millions tokens and draws out plans for sales and distribution with this format:
50,000 for bounties and airdrops
700,000 for sales
100,000 for managers, ambassadors, legal team, and the rest.
150,000 for research, contest giveaways and probably burnt the remaining tokens and bla bla bla.
1 token= 0.001eth
minimum investment=0.1 therefore 0.1eth = 100 tokens
this is use case scenario)
ICO sales promises a tangible % of the minimum investment. eg 25% of what u invest) for 1st sales. if you invest, 1ETH, you get, 1000 token Plus 250 tokens= 1250 total.
10% of what you invest for 2nd sales. if you invest 1Eth, you get 1000 tokens plus 100 tokens = 1100 total
For the bounties and airdrops, there is every tendency that the highest earner for a bounty goes home with 2000 while the rest battles with the remaining 48,000 tokens.
there is also a probability that there will be left over at the end of the bounty distribution which the bounty manager sends back to the project owners.
it is very clear that this business is all about the more you invest, the high change of getting more tokens.I believe that since an investor can spend over 5,6 or more eth to gain huge bonus from his investment. he wastes no time selling off his goods immediately it hits the market and knowing perfectly well that he is on the profit.
EG
he spend 2 ETH to get 2500 tokens. (500 tokens are bonus) . The token hits the market at the price of 0.0005eth if we can start from that price.
he choose to sell back 2200 tokens at 0.000987 to get 2.1736ETHEREUM.
He gains 0.1736 from this sales and still a left over of 300 tokens in his wallet.
There is a probabilty that the price might go up. he might sell if he wishes or he can keep for the long term strategy.
While a bounty hunter that earns an average of 1,200 to 800 tokens manages to sell off at 0.000987 (if he earn 1200) to get 1.184eth which covers stress time, internet bills and miscellaneous stuff.
Also remember that while an investor is free to DUMP off his token and move on to another project, the hunter's token is luck up for months.
SO i believed that tokens are dumped in the market by the same investors once they are sure of profit in order to move to the next ico in the market. Not the bounty hunters or airdrop holders.
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