Bitcoin Forum

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.

It's not "RECENTLY" but this has been going on since the last year (or earlier).

What are the cause?
1. Investors from private sale, pre-sale, ICOs starts dumping and take their profit.
2. Bounty hunters dumping their rewards.

between the two, it's usually the investors who dumps more.

One of the reason is large airdrop tokens another would be a money grab project once the ICO sale is done devs wont even communicate with the community, early adopters will sell for any profit rather than losing.

It depends on the distribution and holding of the tokens.
The tokens on it's pre-sale are much more cheaper than the ICO price. Sometimes half the price.
After the token gets listed, the initial price are generally around the ICO price which is 100% profit for the early investors. So, they put on a sell wall and keeps on decreasing the price. This starts a panic sell from every investors leading to low price of the coin.

Investors dump it fastly, there's no other reasons for that. Everyone is probably dumping that token including the developers. It's no surprise anymore if they keeps on happening.

I do not think it is necessary to carry out the listing of tokens of the company which only raised funds for its development.Such actions of the company just discredit investors.I believe that the listing should occur only when there is a finished product.

Its because many new projects are weak ,they introduced only what has been available in crypto space already ,no new idea to bring value to there tokens ,its one of the reasons I investigate projects very well so that I won't end up promoting shit projects

Since bear market started many coin has entered market and plummet whereas some increase immediately, the problem is not the bear market, the quality of project in question has a lot to do with their success in market.

But there is no such incident at big exchange. Bittrex has made investors disappointed in VBK and it has returned to STPT for x8 after listed on exchange. currently the IEO is still a fever of crypto market but it is only effective for large exchange.
Small exchange will not be as effective and I think they can only be kept at mediocre prices.

Token dump is the usual situation in the down trend market, especially in 2018. It was barely seen any pump after listing in the previous year. The main reason, in my opinion is that people sell out their tokens after listing while there's much less buy demand. Those sellers includes investors, bounty hunters and even project developers.

The first one is lack of good project idea and the second on is many project fail to get listed on very good exchanges ,we have many exchanges with fake volume in crypto space and the third part is presale, giving presale investors too many bonus so when they finally get listed many will have no choice but to dump

This is normal in my opinion since 2018, of course this is caused by investors who directly sell their tokens after the exchange list. Investors who buy through private sale, pre sale, sale tokens at low prices, on average expect higher values after the exchange list so they sell all their tokens.

But also many people accuse the bounty hunter of doing this and I don't think that's the case, because there are several ICOs without having a bounty campaign and after the exchange list the price remains negative.

new coins do not lead to good exchanges
where everyone is trying to sell tokens as quickly as possible
because of this, the price drops dramatically

This has always happened, it is not a recent phenomenon. This happens because most investors start selling large amounts of coins at the same time.

They all plummet because everyone dumps the token for BTC to profit. I'm not sure if they would exchange those BTC to fiat but I guess that's the aim though. Maybe BTC isn't really the most important for anyone in crypto. I always thought it is but if people are dumping the tokens the first chance they get, it must be worth dumping. It always take time before going up again. And by then you can say they never bought them back but only the new investors are buying,.

There are a lot of whales that bought at huge secret discounts and they unload the moment they can.
There can also be a fake high open, so the team can list in their resume that the ICO opened at a high price.

Investors who bought the tokens at a huge discount will definately dump their bag of the price is good. Team members and advisors might also dump.
Why would people sell for a lesser price?
Fear kicks in the minds of the investors as the price goes down. They sell at a even cheaper price to prevent further losses.

For me i think although there are many factors that result in dumping but what i have found is that low interest in the icos due to long bearish market is the most significant reason. Once bullish market is back and everything is booming we will see the effect passing onto ico tokens as well.

What are these discounts? if a dump occurs sometimes in a matter of hours at many tens of percent. All these dumps seem to be pulling money out of suckers. If there are few newbies, then it is surprising that there are still such clients on the market.
The biggest reason for the fall in asset prices is the lack of security. Security can create demand. If there are no more investors who would like to buy after ICO, then the market is empty. In this case, even bounty hunters with their 2% can dump the price.

Aside from the investors and bounty hunters dumping, the community of a project is too small to support the buy wall of the token.  Other developer solve this problem by locking the distributed token in span of sometime while building the economy of the token. 


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.


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

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.

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.

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

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

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 .

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.

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

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

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.

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.

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.

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.

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.

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.

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.

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.

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.

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

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

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

My English ... my knowledge of economic terms ... Sorry. :-[
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.

The simple answer to that is called “DUMPING”, and this became rampant ever since people no longer believes in the long term existence of these projects, so many people you see invest in ICOs are not going to hold their coin or fund longer in the market again or keep it for further increase, as soon as they hit market and they get whatever profit that, it is either they pull out from such project completely, or they look for more reliable projects which are usually older projects like Bitcoin to invest the capital/profit in as future investment. Old projects are still far better and more reliable than the newer ones.

It's normal for people to want to take profit given ICOs are not sold at the same price, early investors are always in profit and ready to sell once there is a market for such project.

Seems to me that most projects too are just creating trading coins and no longer utility coins that will be useful for the future. Many really projects rights in their whitepaper very good solutions to some certain challenges that blockchain technology can resolve but in the end of it, they divert completely from this goal and then turn it themselves to a money making scheme, where they request for funds without executing any physical projects.

So why should an investor really hold these coins for a long term. I would really do the same to if I was these investors, Imagine me buying something at 40 satoshi and then getting an increase of 2x, what more return do I need that will make me keep such investment till future?

Right! This is nothing new, good part of the projects since the start of Token sale trend, lose some of their value upon entering exchanges. It depends on a lot of things, but the most important is token lock period for bounty participants.


Wrong, bounty hunters absolutely are to blame for dump. Investors dont go crazy with dump as fast as coin reaches exchange, they did not invest to take loss. But bounty hunters dont care, they just want to sell and make some money as fast as possible.

Sometimes the team are not meticulous enough when doing a give away doing airdrop and bounty, since they don't know if they will actually raise enough fund, they tend to panickly do unguided referral program, and when the dumpers come, they can't help it than allowing a free fall and later to buy back at a lower price, before price stability for good projects.

That trend hasn't change, still the trend that we are witnessing, it has not change as most project are launch in a small exchange, also with lack of liquidity, the price would easily be affected especially if the bounty hunters will dump their reward without considering the price.

If that was an IEO, maybe there's a chance a price will rise, but exchange is also a big factor, if it's in big exchange like Binance, I'm seeing a possibility that it will not dump.

when coin or token has an exchange market, prices fall because private investors sell in big numbers. so don't blame bounty hunters because bounty hunters get their reward after a few weeks or months later. another story if the project is promising, although many who sell it, the prices will not fall and continue to survive because of high market demand. but this rarely happens.
in this period the developer has a strong influence on the market to stabilize price during a crisis, they must give confidence to the market towards in their project.

Do hunters always have to get blamed for dump in token price? Most times during token listing bounty allocations are always locked yet price drop on exchange when compared to ICO price. People take profit both investors and hunters. If I'm an investor and I no longer believe or agree with a project ideology I sell off my position once listed.

let me put it straight with this. I don't think this has to do with the bounty hunters. I know a project blockmason link that was traded on 3 or more exchanges after its iEO at its original price of $0.01 to 0.008. This trades was maintained before the bounty hunters distribution.

Now the irony started after the bounty distribution, first no hunter can deposit on any of this exchanges.  So they couldn't sell. Then on the day one of the exchange decided to open the deposit functions,  price plunged to 0.001 before the hunters would even start depositing.  Now the question was, who then pulled the price down? Definitely was not the hunters but the team will block anyone who dares to talk about trades on their channel. 

No and no.

First of all, investors mostly are there for the long run , they understand that development takes time , this means that they are patient.
I have participated in many bounties over the years, very few, I would approximate them as 5% of all projects do lock their tokens for bounty participants.

Some projets plummets because investors who get a lot of bonus think that the profits are enough and they decide do sell their coins.
It is because thoses investors maybe don't really care about the project. And because the project still has nothing except its coins.
Some investors follow the selling pressure because they see that the coin is losing more value and they don't want to hodl a coin at loss.

Yes, but now the market conditions are not in a bearish state, the current market trend is turning to bullish. Maybe this situation is still affected by fundamentals in 2018 when all token holders will immediately sell their tokens after they are listed on the stock exchange.

Yeah the performance of ICO become worse and worse the reason is because the investors dont really want to invest, they just want for quick profit, after it hit the exchanges they will dump and look for another project, the developers also lazy to develop further when they see the enthusiastic is decreasing

Because many investors get tokens at the lowest price in the early stage of the project. So once listed, they are sold for profit. At the same time, the holder of tokens obtained through marketing, airdrop, reward and so on. They will sell for profit. So a project investment needs to look at long-term growth space. Don't see short-term profits.

The price of projects will definitely plummet when listed due to some factors which include, but not limited to: lack of strong and cohesive communities, lack of communication between the team and the community members, listing on low volume exchanges, etc

I don’t think it is really based on the fact that the project is not interesting, we still have lots of interesting projects in the market that were still very interesting to the point they were about getting to an exchange, but yet, they still get dumped as soon as they enter exchange and end up discouraging other intending investors that didn’t participate in pre-sale.

I think the major reason I feel these projects gets dumped nowadays despite the solid project they have been able to convince us that they have is because people are very sacred of developers now, and they are beginning to see that they only come up with ICO’s to raise money, so they only want to invest in presale, and then pull out when the ICO price increases as soon as it gets to an exchange for profit, and then move on.

Almost every single token/coin that gets listed not on Binance or Huobi is decreasing in price dramatically. This is the fault of the main team, because they did not make people to buy their coins even after the end of TGE.

It also seems to me that this is a normal situation when there is healthy competition and stronger projects win and go further, while weak ones remain at the end of the list.

So it's good the other way around.  A new project that seemed to the world is not interesting to anyone and it suffers a fiasco.  The rest continue to work and develop.