Who do people dump tokens below ICO price and how can this be stopped?

[boy130]

Usually the people dumping on the exchanges are those who were paid out by airdrop or bounty campaigns, I think one of the best ways would be to pay out the bounty and airdrop participants in stages, e.g. 1/10th per month for 10 months, that way you don't get the complete dump on the exchanges that happens with many ICOs. Of course, if an ICO was genuinely outstanding, not even the bounty/airdrop participants would want to dump on the exchange, so could always just improve the quality of the platform to prevent this.

[1714630693]

1714630693

[Tytanowy Janusz]

Usually the people dumping on the exchanges are those who were paid out by airdrop or bounty campaigns, I think one of the best ways would be to pay out the bounty and airdrop participants in stages, e.g. 1/10th per month for 10 months, that way you don't get the complete dump on the exchanges that happens with many ICOs. Of course, if an ICO was genuinely outstanding, not even the bounty/airdrop participants would want to dump on the exchange, so could always just improve the quality of the platform to prevent this.

Or pay them in other crypto like eth or btc and save more locked coins for team or future distribution.

[Lanatsa]

Recently --

No, it was already present even on the past and not just on these recent ICOs.
It's already a standard/common scenario in which most people speculates that there is a dump after the token/coin release.

On my personal experiences, dumping happens after..
1. Token release to the users wallet
2. After a pump - in result of adding in an exchange

Definitely right!

This thing do already happen since the beginning of those ICO launchers where its normal for investors to dump out their tokens to secure out profits and some of them do have that indicator where they should sell on news or any updates regarding listing, release main net or any other related stuffs.

[FXTradingPro]

One way would be to institute a lockup period. Stop offering the enormous discounts for pre-sale ICO and then the value of the tokens is held intact.

[fiulpro]

Prevented ? I don't think it can be .
Because being decentralized there is no norm of that sort , if a centralized body can genuinely control the amount. Of time ( minium ) a person has to hold the tokens and after that only they could sell it then it would have been a completely different thing, but then again it's your money and you won't ever want anyone else to gain control of it .
If there are any personal reasons and everything , there is nothing that you could do to prevent it.

[jackhdt]

Recently, a lot of ICOs are getting hit by people dumping tokens below ICO price. Some attribute the cause to bounty hunters while others blame it on excess pre-sale bonus. Who do you think is responsible and how can this be prevented?

I think there's a way to stop this. It's not hard if the project team intervenes. We know , the token distribution will take place as well as the bounty hunter. And after the token is listed on the exchange , everyone can sell them. So the bounty hunter usually sells them is normal. What needs to be done is the reward management team will distribute the token after they' ve been on the exchange for a while. Token has been created price by previous investors. This is restricted to dumping

[laravuemaster]

Recently, a lot of ICOs are getting hit by people dumping tokens below ICO price. Some attribute the cause to bounty hunters while others blame it on excess pre-sale bonus. Who do you think is responsible and how can this be prevented?

In my own opinion, dumping of ico's coins after it was been released in the market cannot be prevented because the market prices are all based on supply and demand so obviously, the coin will immediately drop if most of the bounty hunters will be planning to sell their coins immediately in order to earn profit.

[monster2]

Of course many people also want to sell their tokens to the bounty because for the first time you will sell this expensive amount.THIS falls when many people who have not been able to sell their tokens most dump their tokens are bounty hunters.

[Casdinyard]

If your token is worth holding most people will still hold and many will buy more. That's how the whole thing is meant to be. Better to have a great project and make people see reasons to hold & there would be no need to scream that your coin is being dumped.

Lest I forget, also make sure to continuously improve your product(add better features/ incentives) else people will get bored.

Indeed a good point but what about the investors dumping? It's sound ironic but yes sometimes investors are the one who are eager to dump their coins even below ico price. Though apparently, they lose trust to the project and don't mind if they'll have losses. That's why now even a promising project is struggling to touch the ico price once it's listed because of this however if the team and product are really great then it will happen sooner.

[okala]

Many people or investors dump tokens or coins   below icos price out of panic and some do this because they are bounties hunters who did not invest really cash.  If you put in money you will think twice before selling below your investments cost.  I believe that this can be stop if bounties earnings are locked down for a year or if bounties hunters are paid in bitcoin or ethereum.

[deadsilent]

There's nothing you can do when people who bought on ICO price started to sell their tokens. Who do not want an easy money. It's hard to stop them. That's why it's up to team of the ICO how they distribute those tokens. Some ICOs giving large portion of their supply to their bounty programs which i think the reason of sudden drop of the price. Anyway, this is normal. Sell out always happen to any coins/tokens in the market. Distribution of tokens should be equal. So the price won't be easily drop. But this is not gonna happen. It's because of whales are buying huge percentage of the supply. The ICO team should distribute evenly and they should set a maximum amount that investor should get.

[www_blockchain]

I believe that the price below the ICO is reduced exactly by those people who received bonuses during the purchase and they lose nothing from this.

[Nisharawal]

Recently, a lot of ICOs are getting hit by people dumping tokens below ICO price. Some attribute the cause to bounty hunters while others blame it on excess pre-sale bonus. Who do you think is responsible and how can this be prevented?

Dumping the Tokens of the particular ICO Project below the ICO's Market price is not good for any project work because it will lead to worst business effect for the ICO team and to their CEO and management team. This kind of practice is mostly made through excess of pre-sale bonus or excess of tokens distributed through bounties and by many other methods. This can only be prevented by good project concept along with strict project plan and good management, it all depends on how well the project is been managed otherwise, it is sure that the project is expected to incur a loss.

[Nonie]

yes too much bounty hunter cause ico price when entering market will cause the price down from ico price usually between 30%. it's bad but that's the reality now if you want to invest in ico maybe better looking for that no bounty hunter

[aoihs00]

Recently, a lot of ICOs are getting hit by people dumping tokens below ICO price. Some attribute the cause to bounty hunters while others blame it on excess pre-sale bonus. Who do you think is responsible and how can this be prevented?

Everything is responsible from those extra % discount given on the pre-sale and the bounty hunters itself. They have no reason to keep their tokens if they see higher prices as compared to others because they are here to earn profits and they will earn it no matter what because thats the their primary goal here.
You check any ICO in the market, as soon as it gets listed over the exchanger then it will have that surge of people who will dump the coin very hard. You cant do anything about it. But if you really wanna make hot profit then you stay in it for longer time and you will see your investment getting 2x-5x the ICO price as the development take place.

[LogitechMouse]

Recently, a lot of ICOs are getting hit by people dumping tokens below ICO price. Some attribute the cause to bounty hunters while others blame it on excess pre-sale bonus. Who do you think is responsible and how can this be prevented?

The main reason why tokens are being dumped and go below the ICO price is because the investors want to take their profit. PROFIT PROFIT PROFIT!!! Especially if the ICO has a huge bonus like 30% or more, what most likely to happen is it will be dumped.

Bounties and airdrops causing the price of the token to go below the ICO price too. Airdrops in an ICO is an automatic dump for me. Some can regain the ICO price but it will take a long time to reach it again.

[Nahl]

it can't be stopped and in my opinion it was happened because when the tokens listed to an exchange then the price usually not stable even some of tokens are more likely to pump and normally the investors want their money back instantly and when they see the price of tokens are high then they will starting to sold their tokens with automatically the price will dump because sell support are pretty much high than buy support

[anhchangdeptrai13]

Part of the reason is from pre-sale. But that is not a main reason when the number of pre-sale tokens of some ico is blocked. It is worth mentioning here that there are too many ico, ico almost no value. So no one wants to hold it, selling on the exchange to return their money is normal. The best way to prevent this is to not be involved icos at the moment, to buy under the ico price is a good way

[krauzzer02]

You should include the private investors as well as their advisors for dumping the tokens well it depends on their deal and the locking periods of their tokens they usually got the most favorable bonus and discounts in some cases the team itself dumps their own token, for the bounty hunters the dumping effect should be minimal if the pools of their rewards are small, you can't stop them and it's their freedom to sell, buy or hold you forgot the airdrop dumpers OP.

[hasmukh_rawal]

Most of the dump is caused by bounty hunters and airdrop participants. They dump it to get Bitcoin in exchange of the tokens. Only the ones who believe in the token hold it for long and rest all are the dumpers. This can be prevented if the ICO limits the bounty participants to sell their tokens. They can limit the number of transactions or withdraw amount to an extent so that they don't dump all of it together in the market. I have seen many potential coins getting a disastrous start due to this reason. This is why I take my time before investing in any coin.