Topic: Who do people dump tokens below ICO price and how can this be stopped? - page 2. (Read 1062 times)

I too feel that the bounty participants might be one of the reasons behind the price fall. But i would say, the market condition would be a big reason. Just look at days when coins were listed at first, the price even went over the ICO price when the market was really good in 2017. So, merely the market condition would be the reason.

I never sold tokens right after the ICO. And I deeply regret it. Most of these projects that had some value, came to be worth 0. But in the projects that I consciously invested and researched,  the majority still have a profit after ICO.

Right.I have already experienced that.And it's good to know that even some of the campaigns delayed their payments but still they managed to pay their participants in bitcoin,not with their own tokens.Because if not,we will all be frustrated upon receiving our tokens which have very low value at that time.

For those people who want to trade up their tokens after getting it in bounty or invested it depends on a human if he gonna sell or not his bounty tokens.

Well, if the ICO projects were real and not made  for the purpose of scamming, only then the owners can pay in bitcoins / USD. The projects owners almost get free advertisements as they only pay to their workers in the coins which have no value until they come on exchanges.

Locked the token so it cannot be transferred.

If anyone cannot send their token, who's gonna dump???

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Jokes aside, i believe if some ICO somehow got listing on an exchange and the price most likely dumped.

Because there's no demand, who wanna buy ICO in their ICO price if I can buy it after -80% ICO price.

If they truly believe in their project, the community/investor will set his own buy wall and the price will bounce back after the dump happen. That's a big IF though.

Thats was a really simple reason, private investor want taking a short profit by invest in ICO. So they can dump early, but ICO just like a garbage right now Private Investor Or Public both of them already rekted by the market

No, Bounty hunters do always took the blame most likely from most people when we do talk about dumping into its price.They think that small allocation in marketing does really give big impact
into a tokens price without even thinking that the major ones that do dump most of the token is the investor itself.A usual stuff which investor would do, selling out ASAP to secure profits as early as possible.

Bounty hunters and private investors are the people who dumping the price of every ICO. I do not more investing in ICOs because all of them are experiencing dump after get listed in an exchange.

Most of the time I think these things lies on the project developers When coins/tokens gets listed on exchange it get near or no buy options except for mostly zeros so most disappointed investors let the okens loose to avoid further lost I think devs need to show some commitments before listing happen to raise and maintain token prices with their dedications to work

One the bonuses that's on the pre-sale, now investors will use huge amount of funds to bag up the tokens at that cheaper rate, now when they hit the Exchanger with the targeted price the investors dump now in other words investors are really the dumpers of any projects tokens. The project blames the Hunters for no reason we the hunters we work hard to earn them.

Yeps airdrops and bounty hunters are the cause of every ICO token to drop.
You see a lot of projects seeing that team and advisor tokens are locked for 6-12 months. People should consider to do the same with the token allocated for airdrop and bounty. Give them a lockup period of 6 months. Then release the token on the exchange. In this way only investors who contributed to the ICO have tokens to sell on the exchange. But investors mostly want to hold their tokens to make profit and will not dump their tokens. In this way the token value has some breathing time to set itself on the exchange.

Airdrop and bounty participants only are after free money and 95% of participants do not give a sh*t about the projects they get involved with. So for me I would rather invest in an ICO that doesn't offer airdrop and bounty project. Personally I think there are other ways to get a large community involved without doing bounty or airdrop rewarding free tokens.

Reward people that actually attract investors. In ICOs there are 1000s of people doing signature, FB, twitter bounty campaign but most of them only attract people to join the bounty program as well. Personally I think that's the wrong way of working. they should rather reward those who bring in investors and no bounty participants. For example launch an affiliate opportunity where people can earn lets say up to 5% of what his referrals invest and pay out in ETH or BTC. After that they can decide wether they want to withdraw their affiliate earnings or invest in tokens if they really believe in the project and want to support it.

A second way to make more people keep their tokens is to deliver their promised product before it hit the exchanges. A lot of ICO coins that come on the exchanges do not have their product finished yet. So there is zero to none utility of the token. Deliver something that convinces people to hold their tokens instead of dumping.

And that is exactly the reason why I do not buy a single ICO coin. Some time ago I was interested in a porn related ICO. But I did not supported the ICO. I waited until it hit the exchanges and I bought the coin almost 20 times lower than the ICO price.

Most likely it's because of early ICO invetors and bounty hunters. They tend to sell it below ICO price because they don't want to hold it or they need ETH/BTC as soon as pissoble for their needs. I think we can't stop it but we can lessen it.

It's not always bounty hunters whose to blame for the dropped of ICO prices. I have witnessed that investors has already decided right from the start to sell it because they already received a massive discount when they bought it so even just the ICO price when it gets listed is enough for them to make a lot of profit.

Due to 5 main reasons:
1) low margin of token utility
2) Huge ico discounts
3) The bounty hunters
4) poor marketing
5) the overall market conditions
 

LOW MARGIN OF  TOKEN UTILITY

Market growth is driven purely by a balance between supply and demand. When companies run ICOS, they distribute utility tokens which are to be used to perform some functions on the platform. These tokens don't represent a share of the company (except it's  a security token), hence can only grow if there'a market demand from people willing to use that token for its purpose or from speculators. But, as at now, most ICOS distribute tokens which don't have immediate utility for its users. Because most blockchain innovations are still far from reaching mass adoption, the demand of tokens by real users is slim. Hence, speculators who have no use for the tokens are the ones in control of the game now. Because of lack of enough market demand (owing to low utility), the tokens are liable to be dumped.

HUGE ICO DISCOUNTS
In the quest to gain more funds from their ICOs, most companies now offer huge discounts ( I have seen some ICOs offer 100% discounts) this will only attract greedy speculators who will be ready to dump, once the said token hits exchanges. This has hurt a lot of ICOs but i wonder why many still do it. If a company's  tokens have  real quality utility, they needn't give out such huge discounts in order to attract people. Quality needn't be cheap to succeed.

THE BOUNTY HUNTERS

They are a major contributor too. Most bounty hunters don't really care about the value of a token. All they wait for is for the tokens to launch on exchanges, so they could off-load their bags.

Even though the percentage allocated to bounty hunters is usually minimal, market dump still occurs because, at the launch of those tokens on exchanges, there is usually low volume. Hence, even as little as a handful of sellers can crash the price.


POOR MARKETING

This is the one single aspect that makes or breaks ICOs. Yet, it's an aspect that many ICOs lag at.

The value of a token relies deeply on the Buzz it creates.  Great marketing is paramount for the healthough of tokens. If a company has got great products but bad marketing, no one will see the potential that company has to offer. Level of marketing explains why some moderate  blockchain innovations have their token value to x100 while other greater blockchain ideas have their token values go negative in percentage.

Simply put, the more Buzz your token creates among people, the more they are willing to hold it (even bounty hunters)


THE OVERALL MARKET CONDITION

This is more like a self-automated dump

This is probably the biggest determinant. As we all know, most cryptocurrencies are pegged to btc. Hence, they go where bitcoin goes (up or down) . All markets like the forex and stock markets have market cycles. Cryptocurrencies is not am exception. You can have very good marketing, great product and a lot of hodlers. Yet, your token still dumps. This isn't your fault. The market cycle is a predictable cycle that occurs every year in every market. In this case, dump is inevitable.

HOW CAN THIS CAN BE STOPPED


MAKE HOLDERS HAVE A REASON TO HODL!

It all comes down to utility. If a project distributes tokens that  can'take be used for anything yet, these companies should find a way to give incentives to hollers (while they build their project)

Such incentives could be
- 5% addition other hodlers's tokens every month: this has worked for many ICOs. Hyperbridge currently does this. Their tokens dumped but the moment they announce this, the tokens price went back up. It works because people believe they will get more by just hodling. This helps preserve the value of the tokens while  the companies work on building real utilities for the tokens.

-access to certain products services by holding certain amounts of tokens: Users would be widling to buy more to access those services if it suites them.

Just give the hodlers a good reason to HODL. If there's  no reason, then create one.

COMPANIES SHOULD IMPROVE IN THEIR MARKETING CAMPAIGNS

Companies should tighten their belts when it comes to marketing. As I said, nothing is more important than good marketing.

AN EMISSION TECHNIQUE SHOULD BE USED FOR HEAVY-LOAD BOUNTIES

Bounty managers should have a smart contract system that emits the rewards of bounty hunters to their wallets in chunks. That way, before bounty hunters recieve all their tokens, that token's market must have recieved enough volume to become unshakeable by bounty tokens.

this has been popular in the past few years, and investors are also confident in the strength of project funding because developers seem to spend substantial funds for promotion. But now the quality is deteriorating where developers are also afraid to suffer losses, indirectly they also do not believe in their own coins and only rely on sales. If we go back to the old pattern, at least the developer will not worry about the behavior of the bounty hunters on the market.

- I don't think the reward that bounty hunters get is enough to push the price of the token lower than the price of ico because that reward is only a very small part of the total supply, and with such a number, bounty hunters are not the cause for dumping token, even bounty hunters always receive rewards very late, dumping tokens has no benefit for them. The person responsible for dumping token is probably the developer and the investor, they hold most of the token, the reason why they have such actions, it is really a big question and I still don't know the correct answer

It's not a bad idea to change the payment method for bounty hunters. But it is quite impossible to happen. Because most ICO's are scams and they just want to get the money of investors and not to pay hunters. That is why I only see a few projects that uses usd, btc or eth as payment for bounty hunters.

ICO projects can pay bounty hunters with usd or bitcoin instead of their own token. To avoid the project dumping and the price of the token to fall down until that project itself dies. The problem is bounty hunters joins ico and bounty campaign's to gain money that's is why the dump is to be expected. If the team and members of the company really wants to succeed then they really need to change the payment method.

its rare to see when some is selling at a low price . maybe they sell because they badly need the funds ? you know , bounty hunters are poor . they do bounties in the hopes of earning a token that they can exchange for real money  . they thought its cool because they can earn money online and they dont care if the profit that they could get is too low  .

but others prefer to not sell at all because they have a cash on their personal wallet  .  they are hopping that they can earn more income if they wait for a longer time which is a fact  .