There has been many arguments about this topic and while some people put a direct blame to bounty hunters who sell their tokens immediately after ICO and yet very few people can really place hands on the real issue.
Pls click this to see a sample of crypto project token distribution which represents vast majority that falls in this category that I would like to point to as the main reason why the price of some token goes below ICO price after launch.
Sample:
https://s33.postimg.cc/stsemoukf/IMG_1533191759678.jpgUsually the capacity of every project team is never the same, some already have what it takes to finance their project from the beginning while some don't and plan to raise all the money from the token sales and while this helps them to achieve their soft and hard cap, it also places other limitations that is not so obvious
Most investors are profit oriented and wants to make their money either short term or long term and so also is the large group of the bounty hunters.
50% of the token supply and even more goes to pre-sale and public sale which gives the team the required amount needed, then 2.5% goes to the community for airdrop+bounty+bonuses which is where the hunters share from. The pre-sale and private sales usually goes for much lower prices with good discounts compared to the public ICO, which is why it's very attractive to the early investors which later turn to early dumpers. Then after launch, those that bought from pre-sale and ICO dumps the large portion of the coin and forces the price down yet they still feels that it's the 2.5% that the hunters share with airdrop and bonuses that made their price to go down.
Feel free to drop your thoughts on this
That is true, bounties might actually hurt the price in the short term - right after the ICO. This however can be managed by either agreeing on locking time of the token or ensuring that the utility of the token ensures trading volumes.
On the other hand I also heared that smart investors also are waiting for these dumps. When bounty hunters drop the tokens and the price goes down, some investors snap them for a very good price. When the market recovers - that seem to be a smart move. But again, this depends on the token.