Author

Topic: What is the value sold in ICO? (Read 133 times)

sr. member
Activity: 1036
Merit: 275
January 22, 2020, 11:57:59 AM
#15
Does anyone know why the amount raised of a coin is different to the value sold in a coin???  Huh


My basic understanding behind why the value of crypto coins during ICO or IEO different from that of its value when it is listed on an exchange platform is that, during ICO, the team behind the project usually want the general public to invest in their project with the hope of them making some reason profits out of their investments. Usually, the value of the project coin is given a low value to get a lot of people to invest in it.  For the actually value of the coin when it is listed on an exchange platform, its determined by the demand and supply of coin and its working project. If the project is really significant, the value of its crypto coin also gains the public attention causing either a raise or decrease..
full member
Activity: 1048
Merit: 101
January 22, 2020, 11:43:55 AM
#14
I'm confused with your question, maybe you mean the price of coins changes when in the market? or the price of coins exceeds the original ICO price?
In essence, when a coin is listed in the market and has a high selling price, it happens because the market demand is higher than the supply in the market.
legendary
Activity: 3010
Merit: 1028
Leading Crypto Sports Betting & Casino Platform
January 22, 2020, 11:41:51 AM
#13
If you asking about the basic question regarding why most of the coin sold didn't add up with the amount of funds raised. These ICO usually offer some sort of bonus coin for early birds therefore usually you can't calculate the tokens sold just by dividing amounts of fund raised with the price of tokens.
If you are asking about why the price of coin in an exchange is different to what it's initially proposed to be. The answer is the law of demand and supply.
sr. member
Activity: 1400
Merit: 259
January 22, 2020, 11:39:04 AM
#12
Do you mean that it should be equal to the amount raised by the company?

No! That is not how it work.
If that is case then it will be all easy for them. I would just add another 2 million dollars then I could see my lovely coin getting a large value which means I could also sell it back with other coins that I bought except for the 2 million dollars.  Grin
hero member
Activity: 2282
Merit: 560
_""""Duelbits""""_
January 22, 2020, 11:37:00 AM
#11
The value of coins sold at ICO should be proportional to the amount of money collected. But this happens very rarely, because the coins themselves are worthless before entering the market, and after the release, their value can be easily adjusted by the market. In addition, projects first set the price of the coin, and only then funds are raised, and often they collect less than they need, but they do not change the cost of the coin.

It was difficult, but there were also many successful ICO sales and they managed to raise funds for the ICO, but after being listed on the market, the price was still not what we bought at that time, and things like that often happened so it was difficult to distinguish which was more good or successful projects in that market are difficult.
So the value of coins in the market is determined by the demand from traders.
sr. member
Activity: 1050
Merit: 377
January 22, 2020, 11:21:53 AM
#10
The value of coins sold at ICO should be proportional to the amount of money collected. But this happens very rarely, because the coins themselves are worthless before entering the market, and after the release, their value can be easily adjusted by the market. In addition, projects first set the price of the coin, and only then funds are raised, and often they collect less than they need, but they do not change the cost of the coin.
full member
Activity: 554
Merit: 100
January 22, 2020, 11:15:04 AM
#9
if u talking about the price of some coins have a change when going to the market, of course its probably pump and dump scheme,whales take over,corrupt team,the project fail etc.
but if u talking for different mean, i have no idea, since ur question seems dificult to understanding.
legendary
Activity: 3108
Merit: 1029
January 22, 2020, 10:46:56 AM
#8
Does anyone know why the amount raised of a coin is different to the value sold in a coin???  Huh
It caused by the market can't be dictate even if the team who sold the coin in ico have created a collusion with the exchange site. the reason is very simple caused by people must try to understand about how crypto works today. Demand and supply are the main factors who will be determined the price of coin.
Basically, the price that sold by the developer in the ico price just speculation by the developer caused by nothing has already proven.
sr. member
Activity: 1624
Merit: 250
January 22, 2020, 10:02:34 AM
#7
Does anyone know why the amount raised of a coin is different to the value sold in a coin???  Huh
Because ICO tokens are not only sold for USD.  They are also sold against coins such as Bitcoin, Ethereum. And since the prices are volatile, the amount collected can be changed.  For example, recently there was a project called Gigzi, and since it was sold against coins with a voltile price, when the market prices fell, it extended sales because it could not reach softcap.  But when prices rose again, it reached the expected value and moved on to the next levels.
sr. member
Activity: 1372
Merit: 261
January 22, 2020, 09:46:11 AM
#6
Does anyone know why the amount raised of a coin is different to the value sold in a coin???  Huh
This is because of bounty hunters sell their coins immediately in exchange for Bitcoin or Ethereum. And to early investors who buy cheap and discounted ICO coins and of course investors who buy bought me in decentralized exchanges. This is why the price of altcoins often goes down, in addition the lack of interest in buying coins because of the lack of development to attract more potential investors.
sr. member
Activity: 1218
Merit: 251
January 22, 2020, 09:45:17 AM
#5
Your question seems incomplete in my opinion.
That is normal when ICO sales are higher than those on the exchange, tend to be smaller because in my opinion it is a big waste, so many sell at low prices.
So this value is not meaningless on the exchange because the value of coins on the market is clearly very different from trading on the market.
I hope you can understand what I'm talking about.
member
Activity: 784
Merit: 21
January 22, 2020, 09:31:00 AM
#4
Does anyone know why the amount raised of a coin is different to the value sold in a coin???  Huh
I think you mean the ICO price of a coin and when it get listed on exchange the value drops a lot, we'll this is not something new in crypto space, in fact it better to get used to it, most new projects coming out this days have hard time making their coins or tokens stays at that ICO price they sold to early investors, dumps happens, too high discounts and lack of real use cases are example of what can cripple the price of any new tokens
sr. member
Activity: 1150
Merit: 260
☆Gaget-Pack☆
January 22, 2020, 06:18:47 AM
#3
Does anyone know why the amount raised of a coin is different to the value sold in a coin???  Huh
I'm not sure if I understand your question correctly but If I may, I think what your asking is, why does the price of an ICO coin's value differ between the initial ICO sale price, and the coins actual price when it finally hits the market? If this is your question than I think I might be able to answer it. It is like this, the actual sale price during the ICO sale is just the sale price. It is a projected price of a coin because it is based upon several variables which are subject to change.
    One of the most important variables is the current market value of Bitcoin and cryptocurrency at the time when they (the startup/business) first drew up the plans for their project and coin. The price of Bitcoin could wildly swing by the time the coin finally lands on the market and reaches an exchange. Again, this is one of the main reasons the price ends up being a different value from it's original ICO sale price. There are other variables/anomalies that could effect the price, but this is probably one of the biggest.
sr. member
Activity: 1036
Merit: 329
January 22, 2020, 04:07:36 AM
#2
Does anyone know why the amount raised of a coin is different to the value sold in a coin???  Huh
pls elaborate your questions.
Are you asking why the total raised fund and the total marketcap is not the same?
If that was the questions there is some part of the supply given to marketing developers and others thats why the total amount once its listed it in exchange is not the same as the total supply bought in thier ICO.
newbie
Activity: 1
Merit: 0
January 22, 2020, 03:55:24 AM
#1
Does anyone know why the amount raised of a coin is different to the value sold in a coin???  Huh
Jump to: