Why Token value goes down lower than ICO price after launch?

[deonyx]

There has been many arguments about this topic and while some people put a direct blame to bounty hunters who sell their tokens immediately after ICO and yet very few people can really place hands on the real issue.

Pls click this to see a sample of crypto project token distribution which represents vast majority that falls in this category that I would like to point to as the main reason why the price of some token goes below ICO price after launch.
Sample: https://s33.postimg.cc/stsemoukf/IMG_1533191759678.jpg

Usually the capacity of every project team is never the same, some already have what it takes to finance their project from the beginning while some don't and plan to raise all the money from the token sales and while this helps them to achieve their soft and hard cap, it also places other limitations that is not so obvious

Most investors are profit oriented and wants to make their money either short term or long term and so also is the large group of the bounty hunters.

50% of the token supply and even more goes to pre-sale and public sale which gives the team the required amount needed, then 2.5% goes to the community for airdrop+bounty+bonuses which is where the hunters share from. The pre-sale and private sales usually goes for much lower prices with good discounts compared to the public ICO, which is why it's very attractive to the early investors which later turn to early dumpers. Then after launch, those that bought from pre-sale and ICO dumps the large portion of the coin and forces the price down yet they still feels that it's the 2.5% that the hunters share with airdrop and bonuses that made their price to go down.

Feel free to drop your thoughts on this

[pranazzs]

I have read from the LEDU Token telegram group. That a Token will be stable at least 8 months after launch in exchange.

[cha1ner]

There has been many arguments about this topic and while some people put a direct blame to bounty hunters who sell their tokens immediately after ICO and yet very few people can really place hands on the real issue.

Pls click this to see a sample of crypto project token distribution which represents vast majority that falls in this category that I would like to point to as the main reason why the price of some token goes below ICO price after launch.
Sample: https://s33.postimg.cc/stsemoukf/IMG_1533191759678.jpg

Usually the capacity of every project team is never the same, some already have what it takes to finance their project from the beginning while some don't and plan to raise all the money from the token sales and while this helps them to achieve their soft and hard cap, it also places other limitations that is not so obvious

Most investors are profit oriented and wants to make their money either short term or long term and so also is the large group of the bounty hunters.

50% of the token supply and even more goes to pre-sale and public sale which gives the team the required amount needed, then 2.5% goes to the community for airdrop+bounty+bonuses which is where the hunters share from. The pre-sale and private sales usually goes for much lower prices with good discounts compared to the public ICO, which is why it's very attractive to the early investors which later turn to early dumpers. Then after launch, those that bought from pre-sale and ICO dumps the large portion of the coin and forces the price down yet they still feels that it's the 2.5% that the hunters share with airdrop and bonuses that made their price to go down.

Feel free to drop your thoughts on this

That is true, bounties might actually hurt the price in the short term - right after the ICO. This however can be managed by either agreeing on locking time of the token or ensuring that the utility of the token ensures trading volumes.
On the other hand I also heared that smart investors also are waiting for these dumps. When bounty hunters drop the tokens and the price goes down, some investors snap them for a very good price. When the market recovers - that seem to be a smart move. But again, this depends on the token.

[Jamota459]

The price goes down after the end of ico but mostly happen when there higher trading in the market. For investors to buy more coin and hold till price rise up

[jetjet]

i think thats the common scenario nowadays, it's because investor and bounty hunters dump their coin to the exchange resulting to over supply. And the law of supply and demand applies. If we want to increase the price after ico we should hold our coin a little bit longer.

[syypro]

There has been many arguments about this topic and while some people put a direct blame to bounty hunters who sell their tokens immediately after ICO and yet very few people can really place hands on the real issue.

Pls click this to see a sample of crypto project token distribution which represents vast majority that falls in this category that I would like to point to as the main reason why the price of some token goes below ICO price after launch.
Sample: https://s33.postimg.cc/stsemoukf/IMG_1533191759678.jpg

Usually the capacity of every project team is never the same, some already have what it takes to finance their project from the beginning while some don't and plan to raise all the money from the token sales and while this helps them to achieve their soft and hard cap, it also places other limitations that is not so obvious

Most investors are profit oriented and wants to make their money either short term or long term and so also is the large group of the bounty hunters.

50% of the token supply and even more goes to pre-sale and public sale which gives the team the required amount needed, then 2.5% goes to the community for airdrop+bounty+bonuses which is where the hunters share from. The pre-sale and private sales usually goes for much lower prices with good discounts compared to the public ICO, which is why it's very attractive to the early investors which later turn to early dumpers. Then after launch, those that bought from pre-sale and ICO dumps the large portion of the coin and forces the price down yet they still feels that it's the 2.5% that the hunters share with airdrop and bonuses that made their price to go down.

Feel free to drop your thoughts on this

I fully support your thoughts. Early investors shed coins to minimize losses in the event of project damping. They sell half, thereby returning their money, and the remainder remain until better times. At the same time, they do not risk anything.

[krassy]

I think it happend because of tokens has no  influence on project. All tokens are just an instrument to collect investments for project development, but if tokens will be a share or asset of project their will have a value, and will no fall on exchang.

[EtherERC]

maybe too many supply against demand

[Agains]

i think that is issue of all markets in this down trend situation

[Marcel555]

It's partly due to the market trend, the marketvus bearish and most coins go under after launch.
Bounties and bonuses also play a role, in the short term value of the tokens.
The price can also be influenced by large holders and manipulated to suit their desires.

[gamechangers]

Whenever there is plenty of free coins either as bonus for investors or reward for bounty participants, you are most likely going to experience such situations. It does not mean that the exchange price will no exceed the ICO price at the end but the early dumper will initially have the impact on the price.

[sunsilk]

i think that is issue of all markets in this down trend situation

Right most of the markets now are into down trend and if you will start your own analysis to such markets, you'll see that we're not the only market that's on down trend.

maybe too many supply against demand

Yes, the law has been applicable all of the time.

When there are people that are selling their tokens due to panic, FUD and other many reasons that makes the investors and holders to contribute the increase the supply in the circulation.

[antsam]

I strongly agree why all this time the prices went down blamed the bounty hunters, while the coin part of the bounty hunters from each ICO was only about 2% of the total outstanding tokens. It's not fair to blame the bounty hunter

[princessjenyz]

It's true that bounty is one of the reasons why the token price of an ICO dumped once the token is listed on exchange. But it depends,  if the allocation for bounty has large amount of token, there is possibility that the token price will dump. Another reason for dumping of tokens is the market itself. If the crypto market is down, there are many weak hands which they panic sell their tokens. For me, if the ICO project is for long term and SEC regulated as well, it is better to hodl.

[jamids]

50% of the token supply and even more goes to pre-sale and public sale which gives the team the required amount needed, then 2.5% goes to the community for airdrop+bounty+bonuses which is where the hunters share from. The pre-sale and private sales usually goes for much lower prices with good discounts compared to the public ICO, which is why it's very attractive to the early investors which later turn to early dumpers. Then after launch, those that bought from pre-sale and ICO dumps the large portion of the coin and forces the price down yet they still feels that it's the 2.5% that the hunters share with airdrop and bonuses that made their price to go down.

I agree with your argument. Looking at the percentage share of the bounty hunters compared to investors, you cannot just blame it all to bounty hunters because they only have a little share and then if the pre-sale investors were able to get the coin at half its value then most likely they can still benefit from it even though they would dump their coin below ICO price. There are times too when the team would dump their coin because they are either scam or just need the funds.

[deonyx]

There has been many arguments about this topic and while some people put a direct blame to bounty hunters who sell their tokens immediately after ICO and yet very few people can really place hands on the real issue.

Pls click this to see a sample of crypto project token distribution which represents vast majority that falls in this category that I would like to point to as the main reason why the price of some token goes below ICO price after launch.
Sample: https://s33.postimg.cc/stsemoukf/IMG_1533191759678.jpg

Usually the capacity of every project team is never the same, some already have what it takes to finance their project from the beginning while some don't and plan to raise all the money from the token sales and while this helps them to achieve their soft and hard cap, it also places other limitations that is not so obvious

Most investors are profit oriented and wants to make their money either short term or long term and so also is the large group of the bounty hunters.

50% of the token supply and even more goes to pre-sale and public sale which gives the team the required amount needed, then 2.5% goes to the community for airdrop+bounty+bonuses which is where the hunters share from. The pre-sale and private sales usually goes for much lower prices with good discounts compared to the public ICO, which is why it's very attractive to the early investors which later turn to early dumpers. Then after launch, those that bought from pre-sale and ICO dumps the large portion of the coin and forces the price down yet they still feels that it's the 2.5% that the hunters share with airdrop and bonuses that made their price to go down.

Feel free to drop your thoughts on this

I fully support your thoughts. Early investors shed coins to minimize losses in the event of project damping. They sell half, thereby returning their money, and the remainder remain until better times. At the same time, they do not risk anything.

You got the Gist totally, the harm doesn't even come from the low volume shared among many hunters cos their shared volume has a low weight and cannot affect nothing in the market because many of them received low quantities that cannot even be put into the market at the ICO price only few hunters makes above average quantity

[deonyx]

I strongly agree why all this time the prices went down blamed the bounty hunters, while the coin part of the bounty hunters from each ICO was only about 2% of the total outstanding tokens. It's not fair to blame the bounty hunter

You got the idea completely well, I mean it's very unfair to put the blame on the bounty hunters for causing a dump into the market when most of them could not even place their coins on sell in the exchanges because the quantities they received is very low and well below average

[deonyx]

50% of the token supply and even more goes to pre-sale and public sale which gives the team the required amount needed, then 2.5% goes to the community for airdrop+bounty+bonuses which is where the hunters share from. The pre-sale and private sales usually goes for much lower prices with good discounts compared to the public ICO, which is why it's very attractive to the early investors which later turn to early dumpers. Then after launch, those that bought from pre-sale and ICO dumps the large portion of the coin and forces the price down yet they still feels that it's the 2.5% that the hunters share with airdrop and bonuses that made their price to go down.

I agree with your argument. Looking at the percentage share of the bounty hunters compared to investors, you cannot just blame it all to bounty hunters because they only have a little share and then if the pre-sale investors were able to get the coin at half its value then most likely they can still benefit from it even though they would dump their coin below ICO price. There are times too when the team would dump their coin because they are either scam or just need the funds.

Exactly my point, and the more they keep blaming the wrong set of people, they more they will keep making the mistake and everyone of us in the community will still be sharing from the result of the mistakes and sometimes the team might just attempt to reduce the quantity distributed to the bounty hunters thereby making them get discouraged and to other campaign

[Lanatsa]

Most investors are profit oriented and wants to make their money either short term or long term and so also is the large group of the bounty hunters.

With this line you do already said that bounty hunters is one to be blamed and also theres no such large group of bounty hunters yet the token allocation would be still just the same. It might have thousands of participants but the token would be given would be just the same therefore I strongly believe those numbers cant really make such impact. This is already a typical or normal thing to happen on most altcoin where they do dropped on ICO price after launch which isn't surprising and you should blame investors itself.

[Adedbum]

The main reason why Token value goes down lower than ICO price after launch is that the is deep in market and investors are not willing to invest in ICO.