Why the price of a coin goes down and down after distributing the bounty token ?

[dollurs]

What is the reason for a price drop of a coin after distributing the bounty tokens ?. I also heard that some people are talking about this. But can anyone explain the reason why the price of a certain coin going down after distributing the tokens to bounty participants ? . Also if it happens then isn't it a disadvantage to the ICO participants who bought the coin ?

[o_e_l_e_o]

Probably because the vast majority of new coins or tokens being created are either complete trash, with an inexperienced team as behandnd them achieving nothing new, or outright scams designed just to make the creators some money.

[Sir Cross]

Most investors or token holders of an ICO dump their token or sell them right away after the token distribution, and this makes the price go down. The bounty hunters who earned tokens are eager to gain some profit so they choose to sell right away while they have the chance and once the token is already enlisted in an exchange. It’s a disadvantage for those who plan to hold the token for long term however if the project is really good and it becomes a success, there’s still a chance for the token value to go up.

[IIV]

Bounty earners are eager to sell off their token in whatever price possible as they are not the planned investors and they may have some other investment in mind.
But bounty may affect the price for a short time but the supply generally below 5% has very less to do with long term price of the token. Which on return is based on different other factors.

[caisa88]

Bounties ussually represent just 2% of the total number of coins. So if it's a solid project, the price should not be affected by just 2%, or it should recover fast. Most probably the prices go down because of the Pre-Ico investors who bought the coins at a big discount, and are trying now to make a fast profit instead of holding.

[qiwoman2]

Most bounty hunters come just to earn and dump their tokens. Most of them just look at crypto as a way to earn fast money and don't care about the project or technology they are engaged in. It's just another source of online income. Also pre ico peeps also dump their coins trying to get a 5 or 10% profit form their presale stashes, so price dumps hard after ICO unless they are really big projects where the demand for the token is big after the opening of trading.

[rommelzkie]

What is the reason for a price drop of a coin after distributing the bounty tokens ?. I also heard that some people are talking about this. But can anyone explain the reason why the price of a certain coin going down after distributing the tokens to bounty participants ? . Also if it happens then isn't it a disadvantage to the ICO participants who bought the coin ?

It is proven that most of the bounty hunters dump their token rewards when the ICO hits the market. This is because they dont really care on the project. I am not saying all but most of them are like that.

most of the Bounty participants are not investors.

[herurist]

What is the reason for a price drop of a coin after distributing the bounty tokens ?. I also heard that some people are talking about this. But can anyone explain the reason why the price of a certain coin going down after distributing the tokens to bounty participants ? . Also if it happens then isn't it a disadvantage to the ICO participants who bought the coin ?

Most people will sell their coins from bounty/ airdrop program after listing on exchange, for this one the reason is simple. First they need money to do next activity ( trade/ invest, pay bills ) and second reason is they don't want stuck because market is unpredictable. Whatever they do no one can stop it, their coins their call. Find your strategy and good luck to you.

[mikyadel]

i believe that happens for two reasons :
-one is most bounty hunters don't care about the project they participate in ,but care about fast money and they usually don't look over long vision of the project.
-second is rest of the hunters don't trust these projects and sell fast before other people figure the project is originally a TRASH

[Flexystar]

What is the reason for a price drop of a coin after distributing the bounty tokens ?. I also heard that some people are talking about this. But can anyone explain the reason why the price of a certain coin going down after distributing the tokens to bounty participants ? . Also if it happens then isn't it a disadvantage to the ICO participants who bought the coin ?

It happens because bounty participants themselves starts dumping the crypto currencies as they get their hands on it after the distribution takes place. So I think its coming from the hunters side itself. Many times ICO prices are fixed at some rate and for bounty participant it doesn't matter what prices they put on because they are getting the tokens in exchange for their time and efforts and without investing any real money. So its but obvious that they will make it go down.

[Jdragon6x6]

I think the main reason why coins lose their value fast after the ico because of the bounty campaign participants directly sell and dump their earnings. With many coins being dump at the same time the result would be obvious, the price drops so low. A lot of ico have started implementing a lock up for those bounty hunters which I believe is a good way to stabilize the value of the coins after the ico.

[s.Zavgorod]

What is the reason for a price drop of a coin after distributing the bounty tokens ?. I also heard that some people are talking about this. But can anyone explain the reason why the price of a certain coin going down after distributing the tokens to bounty participants ? . Also if it happens then isn't it a disadvantage to the ICO participants who bought the coin ?

This is mainly due to the instant draining of coins. Hunters want to get money faster and start to drain. Investors see a rapid decline and also begin to merge. And those and others do not receive a special loss. As hunters earn tokens and investors get bonuses when buying into preico.

[paul00]

Based on my experience and observation, the price of the coin goes down once the investor eventually sell the coin on the market. I think this sudden offering of coin in the market causes the value of the coin to depreciate

[thesmallgod]

what affect the price of token is the trading volume. when there are many buy order than sell order, the price of the token will increase which is what is generally refers to as pump but when there are so many sell order, the price will fall. in the case of token allocated to bounty hunters, ones they are paid, most bounty hunters (I said most but not all bounty hunters dump coin) go to exchange to sell there coin which make the price go down. this may get worst if the amount allocated for bounty is much higher. however organic growth will start after token are being dump by hunters.

[btccrusher]

Well, after distribution, most people sell their tokens as fast as they can, this makes sense to make price down. However, most bounties allocation are at most 2-3%, so this shouldn't affect the market if the project is good enough.

[gembitz]

Most bounty hunters come just to earn and dump their tokens. Most of them just look at crypto as a way to earn fast money and don't care about the project or technology they are engaged in. It's just another source of online income. Also pre ico peeps also dump their coins trying to get a 5 or 10% profit form their presale stashes, so price dumps hard after ICO unless they are really big projects where the demand for the token is big after the opening of trading.

you are paid bitcoin to update BTI chinese OP ~ when you do what you say then the artist community wins =)

===>

https://freiexchange.com/market/BTI/BTC

[Wildskull]

The reasons for that can be much. Good developers consider support by the raised funds of the token and don't allow strong falling, and those who haven't considered it are in the bottom.

[fakegurutu]

What is the reason for a price drop of a coin after distributing the bounty tokens ?. I also heard that some people are talking about this. But can anyone explain the reason why the price of a certain coin going down after distributing the tokens to bounty participants ? . Also if it happens then isn't it a disadvantage to the ICO participants who bought the coin ?

The value of a cetain token goes down after distributing it and listing in any exchanges is because most of the investors arent really interested in that project, but somehow they pinpoint the blame to the bounty hunterd when in fact, the bounty hunters had only 2% of the total supply or circulating token. No disrespect to the investors but once theyve sensed that the project isnt going to be hit, then expect a massive dump from them.

[ekdahlswart]

Some bounty participant sell their token after bounty end. And because of that the price usually goes down. But some good ICO can survive even after the price down. So don't worry if you think that the ICO are stong and good.

[chocopapaya]

Bounty hunters did not invest their own money so they are more keen to sell right away, because in their mind, they make profit no matter what the price they sell at.
Also, when bounties are distributed, this is typically very early in the coin/tokens life and would typically have very low trading volume.
When a coin has low trading volume, even just a couple hundred people selling off coins at once can dramatically influence the price.

There are other factors to consider.
It is actually very rare for an ICO to give quick profit in a bearish market.
More commonly, the price drops below ico price because the overall market sentiment is to hodl rather than trade.

When the market is bullish, conditions are different and it is easier to flip and bounty hunters typically don't put that much of dent in the price.

With that being said, selling off your bounty rewards immediately is one of the stupidest things I can think of.
In almost all cases, the coin will increase in value 6 months to a year down the road.