Dear ICO Teams, Stop Offering High Presale Bonuses

[trecore4]

bonus attract investors so offering it in their ICO will help them. the first always get the privilege and it is part of their strategy. it depends on the project also but mostly ICOs coins today are below ICOs price after it hit exchange.

Yeah its completely true fact. It is just marketing strategy to attract more and more investors to it. And it is surprising that how people get attracted to it and load thousands of dollars in the pockets of these people. This is really unbelievable fact and they dont even see the insights of the ICO completely. Many people just pop in and think that this is the next big thing of this year and just start pouring the money. Anyway thats different thing but really we cant help in it and they will get their wallets fat day by day as they form more and more ICO's. Sounds like wolf of Wall Street movie. Lolz

[leea-1334]

It is already happening actually. The statistics show a lot of funds still being raised this year than in previous years, but you can see that most of those sold out ones or successful ones all sell out in the bonus phase. Those ICOs that pass the pre-sale or bonus stage fail to attract more investors in the so-called "general public sale".

I think pre-sale should be extremely limited, it should be with proper KYC investors, so people also know who they are who dump. It is their right to dump of course, but ICOs should look for long term partners. Pre-sale should also have lock-in token period. Get big discount for sure, but you must hold for min period.

[OriginTrain]

Some great responses here, many of which I agree with. A good common suggestion is a vesting/freezing restriction period for pre-sales, perhaps for the same period as the team members, and also to reduce the pre-sale bonus from 100-1000% to somewhere in the 30-50% range.

Making it standard industry practice to offer a 50% pre-sale bonus, with a token-freeze of 1 year, will still attract pre-sale investors, whilst also protecting mainstream investors. I'd certainly invest in a pre-sale under these terms; looking at 50% yearly ROI for a solid project I've researched is magic money in finance. There's a difference between god-like returns, and absolute unsustainable greed.

It's the mainstream investors that are the golden goose that we would all ultimately be so very foolish to milk for short term gains. The SEC is watching, and pissing off more mom & pops with token dumps isn't a great idea.

If any ICO team is reading this, please consider the responses here. Overly greedy business practices will not only backfire on you, but all of us.

[Eclipse2021]

I think this is just a part of their marketing strategy as we see every single ICO doing this. It would be nice if they can reduce the total bonus and make it smaller as the first investors get a nice price and they can manipulte the price of the first months after token/alt get listed on exchange and I think they snatch the bounty tokens too when hunters are selling.

[entr]

I think presales a good kickstart for ICOs. Recently, coinmetro which presale price is %25 of last token sold in ico locked tokens of presale for 2 or 3 months after release of tokens. It's a good move for protecting other investors.

[CHENIEN]

I have no enough experience on this business, but I think the control power on this business are only beyond the management and not the users and investors, maybe there are some control of manipulation but the power of control system are still on the cryptocurrency management.

[aoihs00]

That is obvious thing to do as they wont be very good if they dont give discounts to early birds. If they are not giving it then people may not join these ICO projects and thus they may end up reaching max soft cap only. Such projects may not even reach the exchangers as they were unable to sustain any of the ICO sales. As long as the project is hugely popular then we can say that those ICO dont need any attention via discounts and perks. But traditionally most of the ICO do need this marketing strategy to attract lot of people to become successful.

[VenturaBro]

I don't think we can blame the team for doing so. They believe in what they're trying to do is great, with this the teams demand is high. Some investors can also see this point of view that's why they invest, but others do not, resulting with the project not reaching the soft cap. Making the tokens value drop after listing on exchanges.

Yeah they're just trying to provide incentives for people willing to invest in them, which doesn't sound bad on paper.

[bittick]

Nearly every single ICO is dumping at 10x lower than ICO price recently, apart from Credits which is the on exception I can think of. This is due to presale investors dumping their tokens. The practice of giving such favourable returns to presale investors will eventually lead to retail consumers no longer participating in ICOs, since they will always get dumped on. This practice needs to end.

I thought that only some icos were offering a little bonus can get up to more than 2x from the ico price. Not only credut but open token has already traded around 2.5x from the ico price too.
pre-sale is the worst part in the ico.