Bitcoin Forum

Alternate cryptocurrencies => Tokens (Altcoins) => Topic started by: visser99 on November 01, 2017, 04:22:06 PM



Title: Prices go down after the ICO. Why?
Post by: visser99 on November 01, 2017, 04:22:06 PM
I found an original article in Medium blog
on the topic "After ICO, the tokens sank in price. Why?" (https://medium.com/sales-of-tokens-according-to-plan-a-new-progressiv/after-ico-the-tokens-sank-in-price-why-c67754215cc3?source=collection_home---6------1----------------)



Quote
As a rule, most blockchain- projects that have collected tens of millions of dollars for ICO, issue tokens on the exchange without real production growth.

What does it mean?

Tokens being, in fact, internal currency within the project, are overestimated and do not reflect the real cost of the project.
In order for the project to evolve, become popular and the demand takes time, and most tokens begin to access the exchange a couple of months after the ICO. Of course, in such conditions, the course will not be able to show positive dynamics and will start to descend. Thus, investors incur considerable losses, and the market begins to overheat and negative moods grow.

Can I somehow predict the prices of tokens and not lose money?

Unfortunately, this is very difficult to do and only for projects that have been known before. As we know, very much depends on the project team. But will people have large incentives for further promotion? And here the answer is negative, the motives and incentives will no longer be so strong.

So, let’s list the main factors pushing the ICO market down:


1. Revaluation of the current project cost in the ICO phase
2. Inflationary factor, a large percentage of tokens not participating in the distribution
3. The project and the Team do not have significant incentives for development, money is received — you can relax.


I ask to express my opinion on this topic and clarify the real reasons for what is happening. :)


Title: Re: Prices go down after the ICO. Why?
Post by: szachta on November 01, 2017, 04:26:41 PM
They got money and runaway.


Title: Re: Prices go down after the ICO. Why?
Post by: angel55 on November 01, 2017, 04:28:09 PM
most projects do airdrops nowadays, icos are outdated.


Title: Re: Prices go down after the ICO. Why?
Post by: visser99 on November 01, 2017, 04:34:14 PM
most projects do airdrops nowadays, icos are outdated.
and how airdrops can help keep prices on tokens, it's unclear ???


Title: Re: Prices go down after the ICO. Why?
Post by: Bdavid1122 on November 01, 2017, 04:39:19 PM
The ico sells received funds to continue project.


Title: Re: Prices go down after the ICO. Why?
Post by: John Langut on November 01, 2017, 04:41:36 PM
Airdropping is not a serious way for a legitimate startup to raise funds. Think about it. The airdropper gives tokens away for free. All the airdroppers I have seen so far have no goal nor business model except hoping the price will rise so they can sell their reserve.


Title: Re: Prices go down after the ICO. Why?
Post by: angel55 on November 01, 2017, 04:44:18 PM
Airdropping is not a serious way for a legitimate startup to raise funds. Think about it. The airdropper gives tokens away for free. All the airdroppers I have seen so far have no goal nor business model except hoping the price will rise so they can sell their reserve.

thats not true, NEM had airdrops


Title: Re: Prices go down after the ICO. Why?
Post by: visser99 on November 01, 2017, 06:01:17 PM
Airdropping is not a serious way for a legitimate startup to raise funds. Think about it. The airdropper gives tokens away for free. All the airdroppers I have seen so far have no goal nor business model except hoping the price will rise so they can sell their reserve.

I agree with you, if all give money, then this will only further depreciate the goods. It is necessary to understand the mechanism of financing the project in order to be sure.


Title: Re: Prices go down after the ICO. Why?
Post by: visser99 on November 06, 2017, 09:02:41 AM
The answers indicate the correct conclusions of the article on MEDIUM:

 The prices after the ICO go down. Why?  (https://medium.com/sales-of-tokens-according-to-plan-a-new-progressiv/after-ico-the-tokens-sank-in-price-why-c67754215cc3?source=collection_home---6------1----------------)

Then it's unclear why investors are still investing in the unknown, and where to go next?


Title: Re: Prices go down after the ICO. Why?
Post by: jozymens7 on November 06, 2017, 09:20:28 AM
For me, I will always blame some narrow thinking bounty hunters. They are the cause of the decrease in price.
And secondly, you can't fix a price for someone to buy at the exchange just like that. Most people will set buy orders very low to the extend that if you aren't patient, you will lose hope in the project and sell your tokens to prevent further decrease. And most of the time, this is where bounty hunters sell :D


Title: Re: Prices go down after the ICO. Why?
Post by: well1985 on November 06, 2017, 09:53:34 AM
Looking at the prices on some tokens after ICO I decided to try special strategy.
So here it is , i choose the ICO project that i want to invest and then buy their tokens right after they appear on stock exchange markets cheaper than on ICO )))


Title: Re: Prices go down after the ICO. Why?
Post by: visser99 on November 07, 2017, 04:19:34 PM
Looking at the prices on some tokens after ICO I decided to try special strategy.
So here it is , i choose the ICO project that i want to invest and then buy their tokens right after they appear on stock exchange markets cheaper than on ICO )))

Yes, I completely agree with you that the price is subject to a psychological factor. But at the same time, price is an economic category and therefore economic prerequisites for the growth of the rate are so important.


Title: Re: Prices go down after the ICO. Why?
Post by: John Langut on November 08, 2017, 01:09:20 AM
For me, I will always blame some narrow thinking bounty hunters. They are the cause of the decrease in price.
And secondly, you can't fix a price for someone to buy at the exchange just like that. Most people will set buy orders very low to the extend that if you aren't patient, you will lose hope in the project and sell your tokens to prevent further decrease. And most of the time, this is where bounty hunters sell :D

Why do you blame the bounty hunter instead of the ones giving tokens to bounty hunters in the first place? If bounty hunters think the low price they ask for the tokens is worth the time they spent, that is their business.


Title: Re: Prices go down after the ICO. Why?
Post by: images on November 08, 2017, 01:25:46 AM
It's usual condition, usually this is trick from traders to get that coin cheaper
Or maybe because development of the project not finish yet, just IMO


Title: Re: Prices go down after the ICO. Why?
Post by: John Langut on November 08, 2017, 04:32:14 PM
It's usual condition, usually this is trick from traders to get that coin cheaper
Or maybe because development of the project not finish yet, just IMO

People don't have a lot of patience to wait for the completion of the project. Once the price dips below the sale price many investors cut their losses and that starts a snowball effect.


Title: Re: Prices go down after the ICO. Why?
Post by: angel55 on November 08, 2017, 04:43:19 PM
They are starting to move more away from ICOs and doing airdrops instead


Title: Re: Prices go down after the ICO. Why?
Post by: vanphummo on November 11, 2017, 09:38:06 AM
Because some project are not good
They only wanted to create a fever to sell tokens and make a profit from it. No plan. no road, no whitepage, and no ideal
Anybody can do this.
A project will be locked quickly