They don't sell all the remaining 95% they sell as many as they can. I think that perhaps the bounty hunters can make the investors sell out of fear, or vice versa. But blaming the bounty hunters every time is just an excuse and too easy.
Most of the people are blaming the bounty hunters when the price is going down after listing on exchange but the allocation of the bounty hunters are only small amount compare to the big investors they investing during pre sale they can get huge of bonuses.
They like to blame bounty hunters, right?
Too easy to blame something else.
I come across different posts and allegations that bounty hunters are dumpers and they make projects lose it value upon exchange listing. But from my experience with bounties most projects don't offer bounty allocation of more than 5% of the total token sold. So how will 5% dump have a huge effect on the remaining 95% price. And what about projects that don't have bounties but still dump hard on the exchange, is it bounty hunters too?
The bitter truth is that most projects dump because of the ridiculous number of bonuses the team have offered during the tokensale and pre-sale period. Imagine giving investors 70% bonus for their investments, they can decide to sell everything off and be happy with the 70% profit.
Honestly its very unfair to blame the bounty hunters for dump in the price of a coin actually you made a valid cause of the whole saga which had for long been often attributed to massive dumping of the particular coin to hunters whose total allocation is small compared to the bonuses offered whereas the outrageous bonuses dole out to investors who are only after the profits not minding the future and road map of that coin is the major cause of the failure and dumping of that particular coin.
Normally with a good project, the bounty hunters will shoot themselves in the foot if they sell too early.
So, the conclusion is the drop of token in the exchange is affected by two factors.
first is sell token by bounty hunter and secondary is sell token by investor with their bonuses.
I didn't even think of that. You right. When they sell their bonus it is a first come first served basis and then the rest sell to "cover their loss".