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

[okorocrypto]

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?

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[ronsaldo]

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 investors neither the ICO team is the reason why the prices of ICO tokens are being dump once it is listed on crypto exchanges. Bounty hunters and airdrop participants is mostly the reason why ICO tokens are being dump below on it's ICO price. I think it can be prevented if the ICO's team will minimize their allocated amount on bounty rewards and limit the people that may participate in their airdrop program/s.

[davis196]

When the ICO token is listed on some crypto exchange,there`s zero demand for that token.
Some of the token holders are dissapointed,because they have the false expectation that the token price will skyrocket right after the token is listed on some exchange,but it just doesn`t happen,so they just want to sell fast.Having many sellers and close to zero buyers is a recipe for every big price dump.

[Ludji]

When the ICO token is listed on some crypto exchange,there`s zero demand for that token.
Some of the token holders are dissapointed,because they have the false expectation that the token price will skyrocket right after the token is listed on some exchange,but it just doesn`t happen,so they just want to sell fast.Having many sellers and close to zero buyers is a recipe for every big price dump.

This basicly sums it up. The law of supply and demand is present in every market and crypto is no different. The only thing I would like to add is that there are situations when the listing on an exchange is somewhat later in the year and then new demand turns up or ICOs that were sold out fast, so there is still demand for the coins.

[ecnalubma]

Private investors are more likely to be blame in dumping of prices for the reason that they have accumulated a lot of discounts during private sale. Well in the current market status today, moon is just an illusion.

[loicuagio1979]

A likely explanation is that the very low market price is the result of market situation as a whole. As I still remember, last year, investors were eager to buy new coin/ token when it's listed in exchanges because investors had small chance to buy in ICO duration. And the result is that people didn't take care of bounty hunters or excess pre-sale bonus as you said. Well, everything has changed seriously and there is a small chance that the situation will improve in the middle term.

[Bennix]

The bearish market contributed to the dumping of coins below ico price ,but that not 80% withstanding ,if you watch what is happening on the market you will find out that many coins have no working product for example if a telecommunication company has a coin it lunch there is every possibility that one the demand for its service increase, the price of the coin will increase thereby inducing buy plus hold methodology which is the backbone of keeping the price of coins at a reasonable price. To make the matter worse, some developers are cashing out to the extent they don't care on how to creat a product using blockchain technology to attract investors by making investors or patners to key into its blockchain technology.

[pey]

For most tokens it is reasonable decision to dump at any price because the token must worth very little. Lots of tokens now worth no more than a obvious scam coin in the market.

[Dansamiv]

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 opinion, this is a general psychological instability of investors at this stage. Even the altcoin or bitcoin in the market. That is being influenced by panic, FUDs have shaken the confidence of investors. Can not blame anyone. This is a general trend in the market and a positive signal about their confidence will return when the market recovers.

[milewilda]

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?

Prevented? We wont able to stop such thing. Either ICO investors and Bounty hunters are both dumpers since we do know investors would always aim for profits but there are instances that they dont able to gain profits because the price hit up below ico price which is already happening nowadays on most project prices when it  launches on exchangers. If you are a bounty hunter then normal you wont really wait up for the price to dump because of investors which you would definitely sell out asap before others will dump.The earlier the better amount will be gained and you should get used to it.

[acener]

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?

People dump because they only have a little trust for the token. Usually, most who dump after an ico or after a coin is being listed in an exchanger are bounty hunters and airdrop participants. The coin might also have a small amount that's why they sell it too early.

[kevoh]

Remove premining of ICO tokens and the huge discounts during ICO pre-sale, limit the amount a single person can spend to buy a token and spread the the distribution of tokens over a long period of time. If you do all these you just might stand a chance of frustrating possible dumpers!

[npredtorch]

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

[Cript-on.it]

You can't stop it. Only ICO's team can, locking tokens for a period of time.
Who enters in presale or bounties usually sell tokens just when they get listed to monetize their profit.

[Reid]

I think some ICO companies prevented it by not listing on exchanges yet.
They let investors know a little more about them and also the new ones.
I have seen some who did it.

It cannot be due to bounties, that is just a little portions. It might be from the bonuses just like you said.
But there is a catch. The ICO must hit the exact price when listed or else they will be forced to hold.

[drumamat]

Usually, after the listing, the price of the bounty of the hunters will be dumped and also from those investors who are disappointed in the project

[Tytanowy Janusz]

1- 0 bounty, 0 airdrop
2- team token locked for long period (like year)
3- generate huge hype paying celebrities in eth for adverising (not in ICO tokens)

Like docademic. It was hyped by john mcafee and from ICO price 0.000035 ETH hit exchanges with 0.000047 ETH droped to 0.000025 ETH to pump to 0.00013 ETH. It also droped a little but not 80% like most of icos. Only huge hype will stop price from falling. There must be demand from the first days to avoid even single investor to doubt. And hype payed to 2000 bounty hunters for 10% ICO coins will not work.

You guys also need to consider that whale can push price -80% making false valume trading with himself to show you guys that everyone is selling to make you sell your coins. In this scenerio he can buy some of coins from ICO and rest with 80% discount for few mil and then pump this coin knowing that noone will dump him caus he has all coins. Alfter +1000% he will slowly distribute tokens to investors jumping into fomo.

[FlorentineNobleman]

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?

Because no one now buys in ICO, everyone buys in pre ico presales and private sales

[ralle14]

This basicly sums it up. The law of supply and demand is present in every market and crypto is no different. The only thing I would like to add is that there are situations when the listing on an exchange is somewhat later in the year and then new demand turns up or ICOs that were sold out fast, so there is still demand for the coins.

You forgot that the price of Bitcoin/ETH also have an effect on the price of these tokens because those two coins are your only options when they hit the exchange.

Because no one now buys in ICO, everyone buys in pre ico presales and private sales

Are you sure about that ? If no one's buying in ICOs then these tokens shouldn't be distributed in the first place because soft caps won't be reached.

[Ucy]

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.