Do altcoin bounties crash the price?

[johnsm79]

If a bounty is set at a reasonable price, then there is not a problem. If the bounty takes 3-4% of the token pool, then the project would appear scammy.

[Koadharber]

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

This thing i would supposed to say too which the bounty allocation is just 1% which it can really affect the price if all bounty haunters would decide their tokens.If you are an investor of a certain ICO you would really got worried but eventually theres really always a point on where a certain coin do hype up for one time which would definitely surpass on ICO price and as an investor you should really keep an eye on this opportunity for you to sell out and secure profits.

[OriginTrain]

Interesting replies thanks. I guess that's true if the bounty is in the 1-2% range the bounty hunters are not really effecting the price. I agree I'm mostly likely wrong about that. Perhaps it's mostly pre-sale bonus investors, which seems to be a far bigger issue. I've invested in about 10 ICOs so far and all of them have fallen below ICO price within a month of the ICO, particularly on Etherdelta. It's just hard to imagine panicked investors are always selling at a loss so quickly. Where do you think the dumping is coming from? I think it must be the pre-sale bonus investors arbitraging their bonus %. And even just 10 or so whales doing this is enough to provide high volume to manipulate the price below ICO price for a long time.

Pre-sale bonuses for whales seems quite unethical since ordinary retail investors who provide the majority of the capital during the main ICO are penalized the most, whereas those who pick up the token cheaper on an exchange a month later who didn't take that initial risk (and provided no capital to the team) are rewarded with cheaper tokens. Most recent ICO was Black Moon Crypto. That was heavily hyped and sold out within an hour or so, now it's trading less than ICO price. Actually the BMC team seems very good though since they're doing a buyback of tokens at 80% of the ICO price, which is a very nice move to limit the loss to ICO investors which Ir espect. Without that the price would probably be much lower right now. But still, the fact remains its below ICO price. Another big ICO was Aventus that sold out within minutes, also now below ICO price. I didn't invest in Paragon Coin since the bonuses on that were ridiculous, it is obvious it will be dumped far below ICO price when it hits exchanges.

As someone mentioned, with a long term holding approach none of this should even matter. And I agree. Nevertheless, even for long term holding it seems wiser to buy tokens after they hit exchanges rather than through the ICOs. As I say out of the 10 or say ICOs I've invested in, all of them are trading below ICO price (unfortunately I got in after the early August boom).

I think as investors it's wise not to participate in ICOs but rather to buy up the tokens after the pre-sale whales do their exchange dumps. And if enough retail investors realize this perhaps project teams might start losing ICO funding and stop issuing ridiculously high "pre sale" bonuses to whales. Or is my thinking completely off here?

[aanbudi]

No, because usually the allocation for the bounty hunter is only about 0.25% - 2.5% of the total sales of ICO which means very small. And I know a lot of projects that implement Bounty Campaign and become successful because the marketing they do more widely reach. Precisely Bounty Hunters benefit ICO organizers.

[crazylikeafox]

Nope, bounty only has a small % of the total market cap and crash are basically caused by the bonuses the investors get which they usually sell to gain ROI.

[Hammonds]

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.

it's true a lot of altcoin nasty price after entering the exchanger because it always experienced a dumper by the hunters of the prize so they decreased to much below the ico price. maybe i will also think the same thing with you.

[Wood2love91]

Just thinking out loud after reading all the information here.  If Airdrops and Bounties can kill the ICO so quickly, why not use different wallets for each activity.  What I mean for example is any investor uses/receives an ETH wallet.  All Airdrop and Bounty participants must use a Wave wallet.  Then just limit the number of tokens that can be dumped in a given timeframe from the Wave wallet.  There has to be a way to prevent the destruction of the ICO.  Like I said just thinking out loud.

[bitcoinbox]

Yes, altcoins bounties do probably crash the ICO price for all the reasons you've listed.
That's why I rarely invest in ico's anymore. But I keep my bounties in the long term (often a year or more) and then it pays off quite well, most of the time.

[Psynthax]

No, because usually the allocation for the bounty hunter is only about 0.25% - 2.5% of the total sales of ICO which means very small. And I know a lot of projects that implement Bounty Campaign and become successful because the marketing they do more widely reach. Precisely Bounty Hunters benefit ICO organizers.

It's not small as you said, if that based on the total supply and i think you should consider it as a large amount for the bounty but if that bounty based from the total token should and the amount of bounty should be reduced every time.

[ldah94]

From my point of view the before and after is the creation of etherdelta as a decentralized exchange. before you waited for it to come out in an exchange with volume, and on the first day of leaving the token to trade in any decent exchange there was an injection of liquidity that triggered the price up. the difficulty of managing etherdelta added to the little volume and that the speculation is already underway for a definite time until a good exchange comes out, makes the euphoria of buying diminish and you lose those cravings to buy

[Indrawan77]

I think yes,  the price crash due to the alot of airdrops and bonus,  but airdrops is necessary to advertise the coin,  if the coin got a good project and clear vision,  it wont be a problem,  the price will eventually recover and become better,  so don't worry if you enter ICO and see the price fall down the moment entering the exchanger and the price is lower than it was expected from the coin developer

[Didin]

sometimes investors need quick money and quick profit in their mind,, or they have a new good ICO/project and want to make another investments
and investors will sell the coin or token that they buy on ICO's after listed on exchange,
bounty hunters can affected the price but not much

[tansoft64]

Maybe yes because some bounty hunters are eager to sell their bounty tokens after they receive it and this can lead to dump the value of that coin.

[rube08]

Yes it does but depending on the coin, it will recover fairly quickly.  Usually most bounty hunters (not all) just cash out of their earning in the respective currency that they worked for and trade for bitcoins at the end of the campaign.  Usually the dump occurs when they dont input a sell order but usually go with the highest bid for that particular coin.

[v3liana]

only 1% for bounty. dont think its has a effect to the market value. people used to blame the bounty hunter cause their wreck the market value.  my points is its only 1% and not all bounty hunter dump their coin so i guess its below 1%. i agree there might affect the market but its not so extent.

[bbcolex]

Yes, but somehow you can't blame bounties for that. Anyways, look at the brighter side you can buy cheap coins/ token from dumpsters which are mostly coming from bounties .

[wayaneka]

I think the price of token  fall below the ICO price indeed because a big bonus, with a big bonus the investor will soon sell it when listed on exchange because they felt was getting enough profit. But this depends also on the fundamentals of the project, if from a fundamentally good point, it is likely that the price will rise above the ICO price. And for bounty campaign I think only about 1-3% not really effect the price of token.

[Singbatak]

Your suggestion is good BTC or Ether is the rewards given to bounty hunters. But because it's a fix that people might want to join the ICOs to invest or even help to expand their company further. Many as well as bounty hunters will not tolerate such a system so if it's possible that ICOs will no longer be interested in people.

[Nahl]

the bounties hunters always be sold their coin and they even do not to concern for the future of those coin as long as they can cashed the coin from bounties program then probably they will forgot it and move away to find another bounties so my answers is yes it also the cause why sometimes the price after listed to the exchange will dropped at below of ICO price but you can decrease that risk with only allocate small percentages for bounties program

[Welckomtome]

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

a large volume can pave on the price. so they will be better off, but the price will grow on them and not lose value