WHY DO NEW PROJECTS PLUMMETS AT FIRST MARKET ENTRY - page 2.

DeepChipolino

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Quote from: serjent05 on June 14, 2019, 03:40:10 PM

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Discounts are given to the early investors such as private investors , pre-ico price is given to them, wherein the price is at most 50% discount of the original ICO price.
***

+ 50% bonus does not compensate -80% (even -50%) dump shortly after listing.

Quote from: serjent05 on June 14, 2019, 03:40:10 PM

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Care to elaborate this security you are talking? And how does security create a demand?
***

My English ... my knowledge of economic terms ... Sorry. Embarrassed

Yep, I mean the creation of demand for the assets of the company. As support of the asset by the exploitation of the project for profit.

Ucy

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Compare rates on different exchanges & swap.

This normal happens to most projects once they hit the exchanges. Investors who bought it cheap are dumping for profits and bounty hunters are dumping as well. The dumping can be minimal if the project is solid and already has a working product

restuibu

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this happens because investors throw away all bonuses they have got and when price of tokens goes down they will buy more so they can get a profit and this is not new news because it will definitely happen to a new project

BitFinnese

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Project plummets during the first time it enters the market because there is no buy support and the marketing people behind the project failed to do their work. Even if there is a great promise on the project and devs is working hard if the marketing team do not function as it is, they will suffer on the awareness area.

aioc

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Quote from: BayAngelo on June 14, 2019, 05:54:49 AM

RECENTLY, most new projects that hit the exchange for the first time always have a negative ROI for days, weeks while some weeks. such have lead to the demise of some tokens due to poor trade.
what exactly could be the cause.

No platform and dev failed to follow on updates about the roadmap and one of the big reason is investors who got a huge bonus and bounty hunters who dump their shares this early, there is a solution on this the project should do a buyback on the percentage of the funds they've generated on their ICO, this is to keep the price stable.

el kaka22

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Quote from: BayAngelo on June 14, 2019, 05:54:49 AM

RECENTLY, most new projects that hit the exchange for the first time always have a negative ROI for days, weeks while some weeks. such have lead to the demise of some tokens due to poor trade.
what exactly could be the cause.

Because, people invest money into a project not caring about how good it is or how great it could potentially be and they only invest caring about how much the rate is and how much discount they are getting. If you can invest into a new coin that is normally 100 satoshi each but they are selling you 40 satoshi each with their 60% discount for early investors and when the coin is listed on the first exchange it will be listed on 100 satoshi at first minutes until someone starts to sell, what would you do? Wouldn't you buy it too?

See, there is no talks about if the coin is good or bad or has a future, nothing at all, we just talked about the finance of it. Of course, people see this as opportunity and fund it and get their coins and sell it as soon as it is listed which makes it go down on the early days.

Tipstar

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If the project needs time to make a profitable business so that the token holders are rewarded, they should freeze the tokens for the required time. Let it be a year or two but they should dedicate themselves for achieving their promise of return rather than roaming around the world whining about the bear market and why they couldn't get a market.

nemey

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Actually, this condition always happens from some years ago, the coin or token from new ICO hits the exchange with the very dropped price and need years to recover their price or rate again. And sadly, only a few coins or tokens that can survive. It depends on how the team manages and also make the development of their project, depending on how the market receives the crypto, and also how investors care and make the coins worthier.

Galley

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There is nothing surprising. Each of the ICO participants is afraid of losing their investments and sells their tokens at any price in order to stay in the black. Bounty hunters sell at any price in order to get instant profit. So we end up with a collapse in the price of tokens.

Mysteryla

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One of the reasons that make most of the newly listed coins to plunge is lack of integrity. A lot of projects teams promise and fail. By the time they get what they want, you will not see them communicate with the community again and desert the project.

michellee

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Quote from: BayAngelo on June 14, 2019, 05:54:49 AM

RECENTLY, most new projects that hit the exchange for the first time always have a negative ROI for days, weeks while some weeks. such have lead to the demise of some tokens due to poor trade.
what exactly could be the cause.

I think it's because people selling their token in an instant way to get their money's back and that will make the price jumps to the lower price without any chance to increase. But if people know that the project has long-term benefits, I think some people will still hold the tokens and don't sell all in of the token. But usually, the bounty hunters will sell all in what they got from the project so they can make money from the project. That will always happen over and over to many projects because people want to make money.

Bharathi13

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Quote from: BayAngelo on June 14, 2019, 05:54:49 AM

RECENTLY, most new projects that hit the exchange for the first time always have a negative ROI for days, weeks while some weeks. such have lead to the demise of some tokens due to poor trade.
what exactly could be the cause.

As an bounty hunters I have seen some projects which has distributed tokens to bounty hunters as well as airdrop hunters 3 months after listing on the exchange and the ROI of the token was -90% when I received the rewards. The major problem with a lot of the new projects is they sell tokens to private investors with huge discount with very minimum or no lockup period & private investors dump their token on the exchange. Also a lot of project fails to create user base to their platform as they don't interact with community members after the ICO & some project delay their activities as promised in the roadmap.

Yalovtsev

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ISO after 2017,when the project gave a lot of x's profits,and the correction has started,projects started after the release of to pour is very much to the bottom,and the bounty that tokens give,admins of projects which also keep the tokens,and after the IPO,the people immediately begins to drain,and all sypitsya on the bottom,and when the people after the IDF began a profit instead of loss,the belief in ISO was missing people

Karlinz

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This wasn't the trend earlier but it is quite of unfortunate it has become the trend of recent, the issue is that a lot of those projects were overprised at ICO price compared to the worth of the token and market condition. A token that was sold at 0.1$ at ICO during the bull market and probably when btc is around $19000 should not be sold same amount at bear market when btc is dropping and around $6000. The ideal price should be far less than the the previous

styca

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One reason is bounty hunters selling quickly, but personally I don't think this can have a huge effect as bounty is generally quite small.
Some projects offer huge bonuses, I've seen up to 50% extra tokens if you buy early for some ICOs. This can be counterproductive and lead to a big incentive to sell quickly once the coin is tradeable.
However, do look at volumes as well as price. If volumes are very low and the order book very thin, then the price doesn't matter so much as it is less indicative of the real value of the coin.

Whaletale

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Most of the ICO are over hyped and its first entry to market will have to stabilize the price but the demand and supply also has a lot to do with the price which mostly the investors also in hurry to get out in other way not to loss out find themselves in dump or the bounty hunters do that to also sell on time for early gain than holding and have themselves to blame .

Burogh

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Quote from: Pet240 on June 14, 2019, 05:42:34 PM

Quote from: BayAngelo on June 14, 2019, 05:54:49 AM

RECENTLY, most new projects that hit the exchange for the first time always have a negative ROI for days, weeks while some weeks. such have lead to the demise of some tokens due to poor trade.
what exactly could be the cause.

The demand for a coin contributes so much to its price, which means that it has strong effect on the volume. If a coin does not have a real use and there is no demand for the service it provides or for the product, it will be hard to such to grow.
Most of the times, most especially for projects without meaningful product or with no product at all, supply is always higher than demand, which brings about plunge in price.

I am agree, investor must be looking the project with good product. First choice on exchanger is important too because when listed in big exchangers, i do believe transaction volume could increase the price

setialovers

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Quote from: BayAngelo on June 14, 2019, 05:54:49 AM

RECENTLY, most new projects that hit the exchange for the first time always have a negative ROI for days, weeks while some weeks. such have lead to the demise of some tokens due to poor trade.
what exactly could be the cause.

Its depend on the project and community. If the community and the project are good, i think the price when first listing can survive. Many factor why the price drop, but mostly because investor dont have a faith to the project itself or at presale, team give big bonus

Pet240

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Quote from: BayAngelo on June 14, 2019, 05:54:49 AM

RECENTLY, most new projects that hit the exchange for the first time always have a negative ROI for days, weeks while some weeks. such have lead to the demise of some tokens due to poor trade.
what exactly could be the cause.

The demand for a coin contributes so much to its price, which means that it has strong effect on the volume. If a coin does not have a real use and there is no demand for the service it provides or for the product, it will be hard to such to grow.
Most of the times, most especially for projects without meaningful product or with no product at all, supply is always higher than demand, which brings about plunge in price.

Emmy92

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This is normal thing in the crypto market, once a new project gets listed it will go down in price because token holders are selling off. Like you stated it will go on for days, weeks or even months. But what really matters is the team and their capabilities; that is if the team have good plans laid out and start Implementing one after the other, the price will pick up. On the other hand, if the team is reluctant the price will continue going down.

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