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Author Topic: A good ICO is also a Scam.  (Read 470 times)
Rostock (OP)
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May 20, 2018, 09:23:54 PM
 #1

I began to notice that there are ICO projects that are quite good, but even they are a kind of Scam. I'll explain why I think so. First, people invest in this project at the most favorable (low) prices by buying tokens of this project, at least we are always convinced of this. But when it comes to the exit of the token to the Exchange - the price drops sharply and falls even below the original cost for one token. In some cases, it may fall 10 to 15 times. For example, the recent ICO project KickCity. The price of their token should be equal to 0.10$. Now the price for ONE KCY token is approximately$ 0.005, that is, the price fell when entering the exchange 15 times and this is not the only case. Investing in ICO ceases to be a profitable business.
What do you think about it?

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Hughesy26
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May 20, 2018, 09:37:58 PM
 #2

This is actually a common trend in the stock market. It's called an IPO reversal. Basically all of the hype around a launch boosts the inital price of the stock/token beyong reasonable market levels. They often do reverse though - i.e prices fall, bottom out and then increase way beyond the inital IPO/ICO price.

If EVERY ICO did this then no one (smart) would invest in ICOs and instead they would invest at the bottom of this dip.

However, many ICOs do result in coins being much higher on launch day. Zebi for instance 4x'ed I believe. This is more likely to happen with a ICO with a low hard cap, as many people can't get in that wanted to.

So as a general rule, best to avoid ICOs with crazy (50m+) hard caps.

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May 20, 2018, 09:42:51 PM
 #3

Well that's your first mistake right there. You assumed the market price of the token will be worth the same that the ICO is selling it at. Many factors come into play, and to me it sounds like what you were talking about was just a typical pump and dump with no innovation or purpose. A ton of ICO's are made by people who just hope it can get pump and dumped. The developers are the only ones making money in that situation.
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May 20, 2018, 09:45:28 PM
 #4

I do understand your concern, but you need to understand that because a price rise or fall doesn't make it a scam. I could remember Bitconnect price continue to climb until their exit recently. I was selling the idea of a ICO investment to a friend recently and his concern was that is not better to buy on exchange than invest in ICO because  most of these tokens seems to dump on exchange and this is what indeed played out because the priceof the token is now below the ICO price and this is a project I believed in long term

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May 20, 2018, 09:48:32 PM
 #5

Basically, we have very different definitions of 'a good ICO'. Cheesy

As Hughesy26 already said, this is not the case with every ICO and you obviously pick your ICOs the wrong way.
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May 20, 2018, 09:50:48 PM
 #6

sometimes the price is really need a long time to go higher from the ICO price mate
this just a normal price movement in the market

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May 20, 2018, 09:52:06 PM
 #7

In fact that's why there are several strategies to limit this event..like freezing tokens for a given period, or distributing them gradually. This avoids unwanted dumping post-ICO
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May 20, 2018, 09:53:13 PM
 #8

You have just assumed that to be applicable to all projects. Not all ICO will sell low after being lunched into exchange compared to the ICO price. What you should know is this - perhaps you have been investing into pump and dump coins. It might also be that you do not consider the major factor behind investing into good ICO. The product of an ICO is of utmost importance when investing.
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May 20, 2018, 09:53:22 PM
 #9

Well that's your first mistake right there. You assumed the market price of the token will be worth the same that the ICO is selling it at. Many factors come into play, and to me it sounds like what you were talking about was just a typical pump and dump with no innovation or purpose. A ton of ICO's are made by people who just hope it can get pump and dumped. The developers are the only ones making money in that situation.

That's merely a situational, because the devs are the one who will facilitate the funds to capitalize the trading of your ICO token. It happened that the project successfully earned huge funds, but eventually the website of the project doesn't seem to be honest to investors and bounty hunters. Although they've rewarded the tokens for those investors and bounty hunters it doesn't mean you won't be scammed. Scammers strategy can be the volume price at trading sites that became corrupted by the developers.

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May 20, 2018, 09:54:53 PM
 #10

I began to notice that there are ICO projects that are quite good, but even they are a kind of Scam. I'll explain why I think so. First, people invest in this project at the most favorable (low) prices by buying tokens of this project, at least we are always convinced of this. But when it comes to the exit of the token to the Exchange - the price drops sharply and falls even below the original cost for one token. In some cases, it may fall 10 to 15 times. For example, the recent ICO project KickCity. The price of their token should be equal to 0.10$. Now the price for ONE KCY token is approximately$ 0.005, that is, the price fell when entering the exchange 15 times and this is not the only case. Investing in ICO ceases to be a profitable business.
What do you think about it?
I think that you are mistaken for the account of the fact that the ICO ceases to be a profitable business. So many projects are losing price, but really good projects are only expensive
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May 20, 2018, 09:56:47 PM
 #11

It's very easy to call that which you do that know a scam because you don't understand it.

The fall in price has nothing to do with the project being a scam. It's simply supply n demand workings

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May 20, 2018, 10:03:43 PM
 #12

Some of the ICO fall in start it does now means that it is a scam because when the market is in bloodbath it also affects the coins which get out of ICO but many coins go up in price also after getting out if ICO you just need to analyze properly before entering in any ICO.
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May 20, 2018, 10:04:11 PM
 #13

In my opinion, maybe they are still developing the project. But some ICO is impressed to play with the price. But I suggest you stay patient, this happens not only from 1 problem only. But some token holders directly sell their tokens to keep prices down
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May 20, 2018, 10:08:21 PM
 #14

I began to notice that there are ICO projects that are quite good, but even they are a kind of Scam. I'll explain why I think so. First, people invest in this project at the most favorable (low) prices by buying tokens of this project, at least we are always convinced of this. But when it comes to the exit of the token to the Exchange - the price drops sharply and falls even below the original cost for one token. In some cases, it may fall 10 to 15 times. For example, the recent ICO project KickCity. The price of their token should be equal to 0.10$. Now the price for ONE KCY token is approximately$ 0.005, that is, the price fell when entering the exchange 15 times and this is not the only case. Investing in ICO ceases to be a profitable business.
What do you think about it?
Today was another example of the project Libra Credits began to trade x3.5 in ETH. So it's too early to write off the ICO in a non-profit business

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May 20, 2018, 10:13:11 PM
 #15

If you chose this project for investment, I'm sorry for you. If you chose this project for investment, I'm sorry for you. You can, for example, trace prices after ico for QuarkChain projects or Neonexchange. I think you will be pleasantly surprised.
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May 20, 2018, 10:14:12 PM
 #16

Price drop is not a scam, unless the dev fraud you. It's normal if they have a bounty, you shouldn't join ICO for short term. Give it time, you will get sweet return

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May 20, 2018, 10:18:54 PM
 #17

Remember that  ICO developers do not have control on the market trend, even if the price reduce, when they get to exchange, sure there will be correction overtime, and the price will rise. Market reaction has an influence on ever ICO.
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May 20, 2018, 10:25:11 PM
 #18

A good ico is an ico you bought last summer.  Grin No really, I mean it.  Last summer was ico heaven.  I bought tons of ico's and most did x3 to x30.  Just 20% turned out to nothing.  Buy an ico now fro the endless list of bullshit ico's and you're lucky if they even hit the exchanges.  I'm done wih buying ico's.  I just do bounties now.  The only ico's I will buy are the projects I know that are solid but haven't gotten to the stage of an ico yet.  IF they do an ico, I will buy.  I'd rather invest in a project with a solid idea and a coin that is not just a useless erc-20 token whereby the token itself will never be of any good to the system.  All these funny projects like delivery-drones and shipment stupidities that require the token BESIDES the big cryptos to be used IF the project ever works out.  Nah...    Grin
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May 20, 2018, 10:30:44 PM
 #19

I began to notice that there are ICO projects that are quite good, but even they are a kind of Scam. I'll explain why I think so. First, people invest in this project at the most favorable (low) prices by buying tokens of this project, at least we are always convinced of this. But when it comes to the exit of the token to the Exchange - the price drops sharply and falls even below the original cost for one token. In some cases, it may fall 10 to 15 times. For example, the recent ICO project KickCity. The price of their token should be equal to 0.10$. Now the price for ONE KCY token is approximately$ 0.005, that is, the price fell when entering the exchange 15 times and this is not the only case. Investing in ICO ceases to be a profitable business.
What do you think about it?
Lol for me kickcity is a very bad ico,  Roll Eyes if do you think that was a good and you are really wrong aboout that. Terrible team, road map and etc. Look at how real good icos just like zilliqa and ontology give me more than 150x right now from my initial investment. if you are saying that kickcity as a good ico and that's a joke.

 
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bandar
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May 20, 2018, 10:40:26 PM
 #20

I began to notice that there are ICO projects that are quite good, but even they are a kind of Scam. I'll explain why I think so. First, people invest in this project at the most favorable (low) prices by buying tokens of this project, at least we are always convinced of this. But when it comes to the exit of the token to the Exchange - the price drops sharply and falls even below the original cost for one token. In some cases, it may fall 10 to 15 times. For example, the recent ICO project KickCity. The price of their token should be equal to 0.10$. Now the price for ONE KCY token is approximately$ 0.005, that is, the price fell when entering the exchange 15 times and this is not the only case. Investing in ICO ceases to be a profitable business.
What do you think about it?
Lol for me kickcity is a very bad ico,  Roll Eyes if do you think that was a good and you are really wrong aboout that. Terrible team, road map and etc. Look at how real good icos just like zilliqa and ontology give me more than 150x right now from my initial investment. if you are saying that kickcity as a good ico and that's a joke.

Did I mention kickcity?  I don't think so...

Some of the ico's I did last summer were POWR, SNC, MNX, NEU, UTRUST, ATLANT, ...  Most went way above ICO price and I always sold some.

Anyway, you should ALWAYS keep some of your ico coins in case they skyrocket some time.  I bought huge huge amounts of XEM in ico back in 2014 and sold all of them way too early.  f I would have held to them, I'd never have to work a day in my life again... But helas, that's crypto  Grin 
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