Do altcoin bounties crash the price?

[OriginTrain]

It seems most ICOs fall below their ICO price shortly after they're listed on an exchange. This seems to be mostly due to pre-sale bonus investors and bounty hunters selling off their tokens rather than panicked ICO investors. I think it is far more ethical for new project teams to pay bounties in BTC/ETH rather than their token, and to not allow huge pre-sale bonuses, as both these things in my eye corrupt the value of a token. I've decided I'll no longer join any ICOs that utilize either of the above two practices.

If you've invested in a few ICOs, then I'm interested in hearing your thoughts.

[13abyknight]

As long as the project has reserved enough tokens for during the token sale over the bounty campaigns, it should be just fine. Most of the projects these days give a lot of attention to token distribution making sure it goes perfectly even and not to give out too much through bounty campaigns which could cause a drastic crash if dumped. Any ICO giving out more than 5% to bounties could face the dump factor as most of the users who attain tokens from bounties tend to dump in instantly at any exchange for the highest possible price.

[Valzador]

I think is not because the token allocation for a bounty campaign is only about 1% only, a very small value.

[puremage111]

Well it depends

As most of the ICO took out 1% of raised fund towards bounty, IMO this is good because 1% would perhaps affect a bit but wont "Crash" the price

[Bay_Harbour_Butcher]

I think is not because the token allocation for a bounty campaign is only about 1% only, a very small value.

yes I agree with you, the allocation of funds for bounty is usually only 1%, so it does not really affect the price of coin in the market, but what makes the coin is down is the holders of coin presale ico and ico, they mostly sell the coin immediately after entering the exchange.

[mari4nn3]

The percentages of tokens dedicated to bounties are usually vey low so the dumping you see most of the times when ICO tokens hit the exchanges is due to the low demand combined with panic sellers. There are so many ICOs in the past months that money is more spread and only the most hyped ICOs will do well after they hit the exchanges because demand will follow trough after the ICO ends and more investors will want to buy it.

[kandholabhavna]

As a person who has participated in a few bounties till now, I assure you that bounty people never dump their coins in haste. If you look at it this way, mostly bounty tokens are distributed after 2-4 weeks or normal token distribution. So by this time the token has mostly made its own price range between which it trades. Also bounty tokens are only a very less percentage of total distribution, so they cannot lead to dumping of prices.

[sculptoris]

As a person who has participated in a few bounties till now, I assure you that bounty people never dump their coins in haste. If you look at it this way, mostly bounty tokens are distributed after 2-4 weeks or normal token distribution. So by this time the token has mostly made its own price range between which it trades.

Being listed on exchanges rarely happens immediately after the token distribution date. It usually takes several weeks to get listed as far as I know, so bounty people still have an opportunity.

Also bounty tokens are only a very less percentage of total distribution, so they cannot lead to dumping of prices.

I think so too. Actually, the total bounty pool of an ICO is hardly more than 2%. I have met 1% in most cases, and the ranges 0.5-1.5%. So that's not likely to be a big deal anyway.

[krypt0n1]

Each project that has a bounty allocates a certain amount of their tokens for bounty. Many of the people who are obtaining the bounties can obviously dump as soon as the coins hit an exchange but the total bounty allocation is usually very small. It is worth asking the team if it's not stated on their ANN so you can factor this into any investing decisions but I don't think it's a large factor. Also, people often put in work for bounties and many of them believe in the projects and hold long term.

[zikabra]

It seems most ICOs fall below their ICO price shortly after they're listed on an exchange. This seems to be mostly due to pre-sale bonus investors and bounty hunters selling off their tokens rather than panicked ICO investors. I think it is far more ethical for new project teams to pay bounties in BTC/ETH rather than their token, and to not allow huge pre-sale bonuses, as both these things in my eye corrupt the value of a token. I've decided I'll no longer join any ICOs that utilize either of the above two practices.

If you've invested in a few ICOs, then I'm interested in hearing your thoughts.

Why do you think about these things anyway?
If you invest in ICO it means you are not going to sell it ASAP, you are investing in long term because you believe that project will be successful and you will get your shares every month, bounty dumpers shouldn't bother you at all.

[Xclusive5]

I don't buy the idea because I participated in an ICO that worth 1USD per token, the token hits market at 70 cents, some investors dump the coin at 59 cent. In a way both bounty hunters and investors contribute to low price when coin hits exchange.

[onyebuchi81]

I think is not because the token allocation for a bounty campaign is only about 1% only, a very small value.

yeah bro.i think so too.the bounty percentages is too small to affect the price movement and beside not all bounty participants sell their coins.some do hold it.but the outrageous bonuses some ico gives pre-sale investors is another matter.that might be a factor and another reason is the investors orientation. Most ico investor are not in it for the good of the project but just to cash out when the price rises by a certain % and moves on to the next one.

[BitcoinLoan]

The truth is that we must be ready for all capabilities. Sometimes investors understate ICO price and sometimes this same thing doing bounty hunters.

So i recommend it but you must be careful

[TyfrTR]

Developers of the new cyrpto-currencies are using bounty programs to promote their project. Maybe some people who are obtaining the bounties can dump the price of the coin when it hits an exhange. But if they make a good plan for their bounty programs; it wouldn't be harmful for the future price of their new coin. Just my opinion.

[berrygood]

Yes they can if all of them sell immediately but it is not important because it means that there are buyers so the coin is actually valuable.

[Welckomtome]

You need expert opinion form, what do you think about the decentralized e-Chat application? How strong is it in the market?

[chaosfourever]

Not always. It depends on how much was given away and how many want to dump. If the project is good and has a great team then it should stay stable and you would be foolish to sell.

[yura_878]

I do not think that bounty hunters can significantly lower the price because they have a very small percentage of the total amount of coins

[Stavri]

I think yes. Because usually when they pay the bounties, volume in exchanges for that coin usually is very low. So small amount of sells even effects on price.

[Zocadas]

I agree with you, that bounties could cause price dumping under some circumstances, mostly when new cryptocurrencies/tokens don't come with a serious project. But they offer a great way to get many people familiar with new promisible projects. So much experience in marketing, development and innovative projects are needed for the success of new cryptos.