There is a concerning trend over the last year to pay bounties in project tokens instead of BTC/ETH. This leads to market dumps almost always after the ICO due to bounty sell-offs.
In reality, it makes no difference for the team to pay in ETH instead of the token, and here is why: The amount raised in the ICO is usually in ETH. By sending 2% (or whatever the bounty was) from this project fund to bounty hunters, it makes little difference to the team, they still have 98% of their fund left. Furthermore, no market dumping can occur, and we no longer have to listen to the whining on telegram when the price drops below ICO like it always does.
Here is a fact: Nearly all tokens are dropping below ICO value when they hit exchanges during this bear market. The only people that are stupid enough to invest in ICOs at this time are new investors. Established investors will always wait for the token to hit exchanges and buy-up at a lower value during bear markets. This is because established investors realize a lot of free tokens get dumped after the ICO.
If ICO teams continue to payout bounties in their tokens, eventually all investors will cotton-on and no longer contribute to ICOs anymore. With everyone waiting for post-ICO exchange dumps, teams will no longer be able to raise any capital. As of now, retail investors aren't smart enough to realize this, but give them time, and they will, and this will effect the entire alt-coin sphere.
Simply payout bounties in ETH from the funds raised instead of the token. It literally makes no difference for the team, and it offsets the risk for everyone. This terrible trend of token payouts needs to end.
Yeah, your definitely right, most of the ico price drop after the ico ends, and this will continusly happening again and again, so this idea is more great and effectiveness if they implement to less worries on how the ico token drops by the massive dumptation.
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