Hello everyone,
I would like to have your impressions about some ICOs token valuation. For simplicity, let's assume they fall into three categories depending ONLY on their market valuation:
Short-term token. Are the ones that will be heavily dumped once hitting the exchange markets. Tipically used by speculators for quick profit. In other words, overvaluated after ther ICO sale. Probably most of them will never recover. Personally not of my interest.
Mid-term token. Are that ones that once hitting the market will see their price gaining good value in the first days or weeks, specially if they enter first in small markets with an small supply. At some point though, the market will decide they are overvalued and they will decrease its value, at least temporarily. I would say typically this are the most hyped ones or with good marketing strategy, but anyway some of them are very promising projects. Personally, I would trade with some of them, securing some profits and hodling a good percentage of the tokens.
Long-term token. Are the ones that were at some point in the previous "mid-term token" category, but would see its price slowly rising after a couple of months in a very sustainable way. Some of them are mean to HODL for years to come, specially because their associated technology is not yet ready. And sometimes they fly under the radar for the masses, but not for the specialists investing in the fundamentals. Personally, if I truly believe in the project, I would hodl the tokens for a long time, and trading them only for very specific and important reasons.
I know this classification is an over simplification in many senses, but anyway I'm sure some of you saw this kind of price fluctuations and can give us very good feedback based in your experience.
What indicators can we look at to know in which situation every coin fits? How to know their potential price movements depending in how small or big are the markets exchanging it? Many people argue something like: "When the X coin will hit the Y exchange, the price will go Z". And sometimes they are right, but I can't discover yet the factors influencing the price. What do you think?
If you can give particular examples of some coins and particular markets, that will be great, I'm sure this information will be useful for many people. After all, a big percentage of the coins had their ICOs at some point, including some of the most succesful ones. Many thanks in advance
TL;DR How to know if a ICO token is either undervaluated or overvaluated before and after being listed in a (some) particular exchange market(s)?
