Topic: Why the price of a coin goes down and down after distributing the bounty token ? (Read 145 times)
June 13, 2018, 01:37:57 PM
this is just a coincidence because by the time the project ends and ico share the prize coins to the participants and at that time the BTC price falls again so no one is to blame
June 13, 2018, 01:32:03 PM
It's not fully disadvantageous to the ICO investors, some of them are getting bonuses and private selling deals where they can get a lot of discounts but the price was dumping not just because of the bounty hunters and airdrop dumpers but because of the decline of the main cryptocurrency like bitcoin and ETH and sometimes the distribution of the public and private token sale is not done yet adding to the circulating supply that affects the price.
June 13, 2018, 01:30:24 PM
As people above me already pointed out, a lot of bounty hunters tend to dump their reward even for a low price, so the price could drop dramatically. Some of the projects are distributing the bounty allocation in parts, so they avoid this situation.
June 13, 2018, 01:22:35 PM
The thing is that once bounty hunters get their tokens then they are looking to sell these tokens as fast as possible. This can affect the prices of the coin when a bunch of people are dumping their coins at the same time. Also, trading on an altcoin takes time to pick up on exchanges so that also makes the prices of the coins g down
June 13, 2018, 01:08:08 PM
it's true they even instantly become a garbage token, but it's also in effect after bounty hunters get their tokens immediately want to sell immediately, just try if they are compact to hold it might be better
Unfortunately, they never had the same thoughts. Because some of them really need the money quickly, Although the tokens have the opportunity to continue to rise, they will immediately sell it. Only a few bounty hunters who hold their tokens for a while. 
June 13, 2018, 01:03:35 PM
What is the reason for a price drop of a coin after distributing the bounty tokens ?. I also heard that some people are talking about this. But can anyone explain the reason why the price of a certain coin going down after distributing the tokens to bounty participants ? . Also if it happens then isn't it a disadvantage to the ICO participants who bought the coin ?
Almost every badge which shall be paid remuneration in the bounty program, is losing its value! the price drops 50% over time! If you want a quick profit from this bounty, sell these tokens immediately after going public at the ICO price.. then the price will crawl down.. And perhaps more will not rise! And if you rise and make X10 but it depends on the project and after a long time!
June 13, 2018, 12:17:09 PM
it's true they even instantly become a garbage token, but it's also in effect after bounty hunters get their tokens immediately want to sell immediately, just try if they are compact to hold it might be better
June 13, 2018, 12:14:24 PM
Some bounty hunters don't mind exchanging their coins/tokens for below ICO price for them to cash out their earnings, they do that for legitimate reasons.
June 13, 2018, 12:13:14 PM
Bounty hunters did not invest their own money so they are more keen to sell right away, because in their mind, they make profit no matter what the price they sell at.
Also, when bounties are distributed, this is typically very early in the coin/tokens life and would typically have very low trading volume.
When a coin has low trading volume, even just a couple hundred people selling off coins at once can dramatically influence the price.
There are other factors to consider.
It is actually very rare for an ICO to give quick profit in a bearish market.
More commonly, the price drops below ico price because the overall market sentiment is to hodl rather than trade.
When the market is bullish, conditions are different and it is easier to flip and bounty hunters typically don't put that much of dent in the price.
With that being said, selling off your bounty rewards immediately is one of the stupidest things I can think of.
In almost all cases, the coin will increase in value 6 months to a year down the road.
Also, when bounties are distributed, this is typically very early in the coin/tokens life and would typically have very low trading volume.
When a coin has low trading volume, even just a couple hundred people selling off coins at once can dramatically influence the price.
There are other factors to consider.
It is actually very rare for an ICO to give quick profit in a bearish market.
More commonly, the price drops below ico price because the overall market sentiment is to hodl rather than trade.
When the market is bullish, conditions are different and it is easier to flip and bounty hunters typically don't put that much of dent in the price.
With that being said, selling off your bounty rewards immediately is one of the stupidest things I can think of.
In almost all cases, the coin will increase in value 6 months to a year down the road.
June 13, 2018, 12:08:09 PM
Some bounty participant sell their token after bounty end. And because of that the price usually goes down. But some good ICO can survive even after the price down. So don't worry if you think that the ICO are stong and good.
June 13, 2018, 12:08:00 PM
What is the reason for a price drop of a coin after distributing the bounty tokens ?. I also heard that some people are talking about this. But can anyone explain the reason why the price of a certain coin going down after distributing the tokens to bounty participants ? . Also if it happens then isn't it a disadvantage to the ICO participants who bought the coin ?
The value of a cetain token goes down after distributing it and listing in any exchanges is because most of the investors arent really interested in that project, but somehow they pinpoint the blame to the bounty hunterd when in fact, the bounty hunters had only 2% of the total supply or circulating token. No disrespect to the investors but once theyve sensed that the project isnt going to be hit, then expect a massive dump from them.
June 13, 2018, 11:49:54 AM
The reasons for that can be much. Good developers consider support by the raised funds of the token and don't allow strong falling, and those who haven't considered it are in the bottom.
June 13, 2018, 11:39:33 AM
Most bounty hunters come just to earn and dump their tokens. Most of them just look at crypto as a way to earn fast money and don't care about the project or technology they are engaged in. It's just another source of online income. Also pre ico peeps also dump their coins trying to get a 5 or 10% profit form their presale stashes, so price dumps hard after ICO unless they are really big projects where the demand for the token is big after the opening of trading.
you are paid bitcoin to update BTI chinese OP ~ when you do what you say then the artist community wins =)
===>
https://freiexchange.com/market/BTI/BTC
June 13, 2018, 02:39:20 AM
Well, after distribution, most people sell their tokens as fast as they can, this makes sense to make price down. However, most bounties allocation are at most 2-3%, so this shouldn't affect the market if the project is good enough.
June 13, 2018, 02:31:18 AM
what affect the price of token is the trading volume. when there are many buy order than sell order, the price of the token will increase which is what is generally refers to as pump but when there are so many sell order, the price will fall. in the case of token allocated to bounty hunters, ones they are paid, most bounty hunters (I said most but not all bounty hunters dump coin) go to exchange to sell there coin which make the price go down. this may get worst if the amount allocated for bounty is much higher. however organic growth will start after token are being dump by hunters.
June 13, 2018, 02:20:57 AM
Based on my experience and observation, the price of the coin goes down once the investor eventually sell the coin on the market. I think this sudden offering of coin in the market causes the value of the coin to depreciate
June 13, 2018, 01:49:19 AM
What is the reason for a price drop of a coin after distributing the bounty tokens ?. I also heard that some people are talking about this. But can anyone explain the reason why the price of a certain coin going down after distributing the tokens to bounty participants ? . Also if it happens then isn't it a disadvantage to the ICO participants who bought the coin ?
This is mainly due to the instant draining of coins. Hunters want to get money faster and start to drain. Investors see a rapid decline and also begin to merge. And those and others do not receive a special loss. As hunters earn tokens and investors get bonuses when buying into preico. June 13, 2018, 01:46:41 AM
I think the main reason why coins lose their value fast after the ico because of the bounty campaign participants directly sell and dump their earnings. With many coins being dump at the same time the result would be obvious, the price drops so low. A lot of ico have started implementing a lock up for those bounty hunters which I believe is a good way to stabilize the value of the coins after the ico.
June 13, 2018, 01:44:13 AM
What is the reason for a price drop of a coin after distributing the bounty tokens ?. I also heard that some people are talking about this. But can anyone explain the reason why the price of a certain coin going down after distributing the tokens to bounty participants ? . Also if it happens then isn't it a disadvantage to the ICO participants who bought the coin ?
It happens because bounty participants themselves starts dumping the crypto currencies as they get their hands on it after the distribution takes place. So I think its coming from the hunters side itself. Many times ICO prices are fixed at some rate and for bounty participant it doesn't matter what prices they put on because they are getting the tokens in exchange for their time and efforts and without investing any real money. So its but obvious that they will make it go down.
June 13, 2018, 01:40:34 AM
i believe that happens for two reasons :
-one is most bounty hunters don't care about the project they participate in ,but care about fast money and they usually don't look over long vision of the project.
-second is rest of the hunters don't trust these projects and sell fast before other people figure the project is originally a TRASH
-one is most bounty hunters don't care about the project they participate in ,but care about fast money and they usually don't look over long vision of the project.
-second is rest of the hunters don't trust these projects and sell fast before other people figure the project is originally a TRASH
Jump to: