Bitcoin Forum

It is not a doubt that the leading problem faced in the alcoin/ICO investment is dumping. Seeing a token you invested into being traded at a drastically low price to the face value is highly pathetic.
What do you think the project developers can do to prevent the bad effects of dumping on investment?

Dumping is the choice of individual investors and we can't prevent it and should not even try to.
No one would dump without a reason, everyone has profit in mind while buying or selling. If they found the token not worth holding they'll sell.
It's upto the project to convince it's investors/bounty participants to hold onto, not with words but with actions.

This might not exactly be easy to do. Bounty hunters usually dump their tokens immediately after they get them, or investors do so, when they think that the coin is/wouldn't do so well, and this in turn usually causes a downtrend in the price of the coin/token. I think that the individual actions of these people cannot exactly be controlled, so dumping can not be prevented also. Whatever people choose to do with their coins/tokens is left for them.

I agree with your suggestion because we all have our individual right and decisions about any of our coin and if anyone feels a coin is not worth holding, the person can sell and put the money in a promising one but if the team members and manager of a particular coin can convince it's investors of the potential of the coin and how promising it will be on hold and they should put into action, then I think investors will reduce the rate at which they dump a coin but as crypto is, there are many altcoins that have stated how potential their coin is and eventually they crash or are not even worth holding. I believe in future, altcoins will be worth holding because by then only the potential and promising ones will remain in crypto.

There is no way to prevent dumping, people are the owners of their coins and they can do whatever they want with their coins, which is the point of cryptos. If we want to counteract the effects on dumping on the market when we notice it, then we have to buy coins, if the demand is equal to the supply of the coins then the price of the coins will not fall.

I don't think this can be prevented because it is a choice of the investor, bounty hunters and airdrop participants. Also, I think locking the tokens or slowly giving them the amounts on a monthly basis.
I've participated in many ICOs that locked the tokens for X number of months, and also some ICOs that issue their tokens on for how many months.
Lets be honest, most of these times the bounty hunters and the airdrop participants, are the one who dumped the early tokens.

If dumping happened even developers can do nothing about it . The people who trade it daily have the option to pump it or dump . Well the only thing that developer can do is make their crypto better than other when it comes to usage so people will consider it buying even they increase their offer to get it .

Lol
This is a joke question because dumping can never be stopped
Why??

Every one has access to their wallet and has an access to their decisions too
You can compel me not to dump or sell

It can't be stopped, unless you want to stop the free market, which makes no sense for crypto.
ICOs should have dumped some when it became clear we're in a bear cycle, like Viberate for example. Dumping now is a mistake.

Ico are very affected on bitcoin situation, of course all currency is connected on this coin which is the center of all crypto. All are trable on btc so once the price is dump. Other currency will also follow. In conclusion this is not bad as other thinking. I believe everything will be alright

I've seen some ICOs stagger the distribution of their tokens, and even implement lock periods for their investors to ensure that they can't simultaneously dump on an exchange as soon as it becomes available. I know that a lot of ICOs will require large, or early investors with a significant discount to also accept a freeze period to ensure they can't crash the market and get a quick return.

Dumping can not be prevented. Could you imagine the situation when everybody buying crypto and don't sell? No!

Is there really a way that this can be prevented? Whatever choice any individual decides to make as regards their own tokens or coins cannot exactly be controlled, so this dumping of a thing cannot be controlled or prevented really. The only thing is team members of a coin have found a way of delaying these actions by not distributing tokens on time to bounty hunters, as they are usually behind these dumpings.

During the last 6 months. Only a few amount of ICO didn't dump after a listing on an exchange

Most of them had the price decreasing. To avoid that, I am not participating in ICO's anymore and I am just buying after listing

lol this is our free will to hodl coins, the best way to prevent is only hard work of developers and their product because every coin should offer something this one what offer something like BTC (transactions) dont have rly future

My suggestion is that the team should not be giving bonus during the crowd sale or private sales and bounty tokens should not be release to bounty hunter all at once, they should be releasing let's 5 - 10 % of bounty tokens once every month, three months, this will prevent dump.

Asking people not to sell at a price they want to? Not gunna happen, people will always dump. Personally I dont mind people dumping as it further distributes the coin into the community, plus if you have faith in the said coin you can purchase it at a good price.

The best prevention of a mass dump is producing a well coded working product.

Well, many project developers choose to luck their token from different people to avoid to much amount of token to be dump in a market. But I think the first thing to do is have alot of exchange sites for the volume to be divided.

dumping is inevitable because once you unlock a token, there is nothing you can do about it because you are no longer in control of the coins any more, the users do what ever they wished with it, if they want to sell low, you can't stop them.

The only way project developers can prevent dumping of their token is to develop their platform, people dumped their coins because of lost of trust on the project, if the project is good there will always be a new taker for a dumped token, you cannot stopped people from dumping their shares because they work for it or bought it.

The leading source of dumping is people that purchased during the private or presale at a substantial discount. The way to prevent that dumping is to require that they are subject to mandatory holding periods. ICO's don't want to do that because without that substantial discount and the ability to sell it as soon as it starts trading these people would not invest. As an investor you can avoid this by not investing in projects that offered large Private and PreSale discounts but without any hold period.

I am seconding your point, I don't dumping of tokens cannot be prevented because everyone is in control of their coin, you might be holding a huge amount of coin and something might happen, you can decide to sell off and tackle the problem, so you can't prevent dump, it will always happen because people will sell at price they feel it is okay by them

I think one way to prevent dumping is to reward bounty hunters either through eth or btc. Also, they should not offer discounts so as to prevent dumping by investors. They would want to sell at ico price or even higher instead.

I have seen projects do this in the past such as with Qtum and it seemed to work well for them.  Another method to help reduce dumping would be to allocate only a small percentage to bounties like 1% of the total coins and maybe distribute them in portions. 

They have control of their wallet. OP needs to try to get a better question rather than this one. The only problem these icos must never try to offer a lot of discount in the crowdsale and that can prevent those investors to dump their tokens. So many icos created a non-sense discount to attract this ico trader.

its only natural for an altcoin to dump. it is because of an individual who decides to sell their investment for some reason. the only thing that the developers can do to prevent it is to improve their product and to show their investors that their product is worth to invest with.

Sadly it's a free market out there. Dumping is something part of that free trade. It is the same concept that allows hodlers to keep their coins at will.

So it will be a paradox to dictate dumping to be prevented as it will manifest a restricted hodling too. Perhaps ICOs should really work hard to emphasize utility of their token that would make coin holders think twice before dumping.

But i do get your point, it is somehow relatively pathetic to buy ICO tokens and just dump it away with face value shredded into bits. Unless of course the tokens they hold was from bounty payments that they know not the actual value of investment.

They can buy into their coins to stability the price and if want to prevent bounty hunters sell-off, they can lock reward tokens in the certain time

You cant prevent people from doing what they want especially dumping their coins. Some people dump their coin to invest in a different project and some of the dumpers who got their coin for free from airdrop or bounty dump their coin to take profit from it.

Sell or airdrop only to people who care about the project? (how do you even identify such people?)
 Prevent people from dumping all at once?
Give rewards or bonuses to holders?
Incentives people to hold?
Only airdrop tokens or coins to people who would hold long-term?

We can't do nothing about it, and also why would we?
There wouldn't be any pumps if there is no dumps.

Well basically dumping is normal to a market and almost all ico projects that are listed to an exchanger are drastically went at very low price . Some factors are because of

 BOUNTY HUNTERS- We all know that bounty hunters has major impact once they sell all their token at the market. Some hunters sold their token very cheap from the face value of the token

NO BUYERS-  when the token are listed at the exchanger and very low volume some may tend to sell their coin at the ask price far away from the original price then major dump will follow

I think dumping is mostly done by investors who buy them during pre-sale/private sale at a fraction of the public sale price
For these investors even selling (dumping) below public sale price give them great profit. Generally these investors hold vast qty of coins and dumping of this coins below ICO price will effects the coin value and credibility will will furthe pulls down the coin price as normal investors gets panicked and start selling their coin to "minimize losses".One method to  avoid dumping is to lock the presale tokens and release them gradually in phased manner

I think it is best that the project reward their bounty participants with either eth or btc. Also, investor discounts should also be minimize to prevent short term profiting of early investors who wants to get out as soon as the tokens are available in the exchanges.

I think they can't control prices in the market, all they have to do is launch their product so that their coins / tokens have a value

It only depends on your own strategy when you lose the price of altcoins because you need to sell your coins once the price drops because they are down here when you lose until your money is lost.

Preventing dumping is actually very easy, that is, the project party should not give up first, and many projects fail because this is a scam.

The developers can limit the number of tokens to be withdrawn by the bounty hunters and even investors. After distribution, developers can limit them to withdraw only 50% of the tokens. And later allow them to withdraw all of them. I saw this with crypt assist which I wasn't rewarded any stakes though  ;D.

       I don"t think that dumping of the token by most of bounty is really the cause of the price  crash since this is one way of introducing their coin , and the total coins allocated for bounty  is very small and cannot affect  the entire price of the particular coined .

If you think the price of that altcoin/ICO is really higher than the price that other person is selling, why don't you buy it? If so, you will have a big profit, isn't it? Today , the price of gold is 1,203 USD/ounce, if someone sold gold as 1,000 USD/ounce, I will buy all of them.  ;D

There is nobody who can stop a coin from being dumped. It depends on the strategy that you plan and execute which can decrease the impact of a coin being dumped. Most of the ICOs launch bounties and airdrops and lots of people take part in it. If too many coin are allocated to bounties and airdrops and all the coins are given to the participants at once then it is a sure thing the price will go down since all of them will dump it. The best way I see to prevent it is allocate a smaller portion to bounties and then give coins little by little so that the dump is not huge.

I think it is best that the project reward their bounty participants with either eth or btc. Also, investor discounts should also be minimize to prevent short term profiting of early investors who wants to get out as soon as the tokens are available in the exchanges.

The people who trade it daily have the option to pump it or dump . Well the only thing that developer can do is make their crypto better than other when it comes to usage so people will consider it buying even they increase their offer to get it .

the first thing that is done is to throw or no bonus in the sale, the bonus is the problem that causes the dump. if our product is good then it is sure that the price will reach even more than ico.

There is no other way than to hold back so as not to suffer losses, maybe because the crypto market that is down now also has an effect on ico prices, and being patient is the key to getting profit and thinking positively about cryptocurrency in the future

Seriously, you can stop dumping by putting all your money in to push up the price. Maybe that amount is up to tens or hundreds of millions of dollars. If you do not have enough money then be patient waiting for the market to recover.

People are free to do whatever they want. Which is why preventing people from dumping may be a little difficult. Now, if the reward system is that you need to hold more to receive more for ICO projects, this might reduce the dumper count.

I agreed with your point by removing all forms of bonuses to investors is one of the ways to curb dumpings which had been abetting and encouraging investors not to believe in the project but  solely for profits making thus undermining the purpose of hodling for a longer time and sustaining the coin.

It is not something that anyone can attempt to prevent from happening. It is totally up to token holders what they are going to do. Look at this from a positive perspective as when an investor or a bounty hunter dumps his/her tokens in the market before the corresponding ICO project reaches to its full potential- it actually creates a good amount of liquidity of tokens in the market and because of this others can also buy, sell and also hodl that token.

it is hard to say but if the project is really good then the project will survive in any situations and if there are a dumps for the price, the price will be back to the higher price and even it will reach the higher price again. but this depends on how strong the dev and the team to keep trying to survive in the market so they can back up the price to the high level.

the pump and dump process cannot be determined by the project team, even though the development team has created good products and regular updates but if investors are not interested they will dump and vice versa.

Dumping is really a pain in the as*
specially when a reall good ICO or Project once hit a exchange.
And some holders are just dumping like there is no tomorrow.
im not talking majorly. but one of the factor is the distribution of token on the same day, with the Investors and Hunters.
i suggest it would be better if the investor get there token first and the reward for hunters be locked for a couple of weeks.
at this point, the investor could make a profit on what they invested.
without the possibility that those people who get there token for free. wont get along and affect the token price on the exchange.

I think dumping happens due to project's negligence. They give big discounts to private investors, they don't pay for listing on big exchanges, they don't do thinks to create liquidity. They don't do proper marketing campaigns.

For me we can't prevent a coin to be dumped. Maybe if you are a market maker, you can have an influence on the chart but if that's not the case, on can do nothing.
But you can make trade with stop loss to prevent too much losses.

The teams of Projects most of the time always get their token metrics wrong and what most project do not realize is that too much bonuses not only motivate people to purchase the tokens during the ICO, but it is also an encouragement to dump on other investors when the tokens ar released without lockup

It's very difficult to prevent that because the market cannot be predicted and all pairs with Bitcoin.
No matter how strong the development team makes a back up for its altcoins but if Bitcoin goes down then all the prices will drop.

The project devs should be serious with their project so people won't dump their coins.
This is why they keep on creating different types of protocol such as proof of stake.
Dumping can't be prevented, this is part of any economy.

Transfer funds to ico/bounty participants in batches and have your coin/token on exchange having good volume. If there is no volume, couple sell orders will bring the price to nothing.

The dumping of tokens of a certain ICO project after it has been distributed in the wallet ,can be prevented from the dump by , not putting any exchanges in the trading sites , because tonens can not be dumped to sites if there is no equivalent exchanges ,so this can prevent tokens from being dump in the different trading sites.

I read a trader saying that investors are also dumping because of an unstable market, they sell immediately the assets they have after the token listing with little profit in pursuit of other tokens being promoted.
We know that at this time the ico project was finished, the majority had a low than ICO price, this situation made investors sell immediately with the hope of not having a bigger loss, in contrast to investors who have large capital, maybe they choose to hold back
Dumping is a choice, that's right, so developers must be able to ensure how good their tokens will be in the future for investors and I'm sure many bounty hunters who have long been involved in the crypto world will also hold their assets