Token price dropping after ICO, why so?

[Tylev]

Reducing the price of a new token after listing it on the stock exchange is a common occurrence. In most cases, it is due to the fact that early investors who bought tokens with large discounts immediately sell them on the stock exchange and have a good profit. Also partially sell their free tokens and ICO generosity campaign participants. In addition, sometimes ICO teams deliberately overestimate the cost of their tokens, and after they appear on the stock exchange, they fall in price. This year, the fall in new tokens is also affected by the fall with the long-term stagnation of the cryptocurrency market.

[yansen]

I think most investors have sold the tokens they bought at the ICO. especially at presale. because at the presale, the investor gets a bonus of up to 50% of the purchase. after release on the market. then dump prices. in addition, the bounty campaign participants also became part of it. help dump when the token has been released.

[louie69]

As per observation, there are many tokens that happen to drop right after the token sale right after being established on the exchange listing sites. One problem could either be people dumping their coins right after being rewarded from their bounties. Another observation could possibly be part of the ICO strategy to let their investors stay with their investments and not to dump their invested token to a much lesser value. Lastly, in the event after the ICO listing and the market happen to be in a down trend market, this could also affect the price value of the newly released token.My thoughts.

[67semih]

They are dropping because of the bounty hunters. Hunters make advertisment of the project and then take their part. And they want to convert it cash money. So they sell it.

[nsson8e]

Token prices are constantly falling. We are in bear market. It's hard for ICO to maintain ICO price after exchange listing.

[Cajor]

It completely depends on the rate of demand. As people shws interest, the price rises. The price falls with the loss of onterest of the investors.

[CryptoBry]

It seems many people says what causing the price of coin after ICO dropping, is because the bounty hunter dump their coins when it first time available in the market, but i think that would be another reason behind that.

This is quite a possibility but if you look at what percentage of the total tokens or coins that bounty hunters are holding at any given time then you will realize that the amount can be insignificant. I am more inclined to believe that once a token/coin is already in an exchange, big investors who owned big amount of the asset are cashing out all because they understand that eventually the value is going down...and lastly the owners and developers of the projects are actually unloading their shares so they can make some profits too. I don't think blaming everything to the bounty hunters why there is a big dump in value can be fair enough as most projects are just allocating 1-3% of the total supply available for bounty promotions (and many are not even paying or increasing all tokens to the bounty especially where there is a KYC required).

[mbah]

When the supply in the market plus, in this case often occurs from the bounty hunter. and plus the sales factor larger then this would make the value of being fallen quite deep and even this often happens in ICO. many are pulled off their coins by quickly and this makes the price falls. because perhaps many who already have the assumption that prices always go down then it is better to sell faster than having to wait but the price did not go up.

[Mikeschmitt]

As with any business there will be changes regarding value as there are many underlying factors that play a part in the increase and decrease of value and this is no exception.

[NerdYale]

Well obviously its because a lot of bounty hunters are immediately dumping/selling their coins massively after receiving their rewards from their respective campaigns. This can really bring a coin/tokens price down because mostly would accept any price lower as long as their coins/tokens are sold.

[BTCreward]

I do not know why this is happening, but I like the excuse of managers and developers of the project, the fact that it is all the fault of bounty hunters.

[bchain22]

So, is it good for the ICO-s to do the bounty campaigns when their token prices plummet because of the selloff? I see a lot of bounty campaign threads here as well..

[deevan]

There are several reasons that make token price dropped after crowd sale is finished. Firstly due to early investors who bought tokens during a private sale, as in private sale you get more than 50% usually so these investors just take their profits after the token is listed on an exchange on the first day, they have no intention to hold for a long time these investors are usually whales.

Secondly, due to the running product, There is no running product offered by the ICO project so it doesn't attract new investors. So, as a result, there are more sell orders than buy orders.

Lastly due to bounty hunters who got tokens to promote an ICO also are the reason for a price drop as they don't care about the token price during ICO and sells less than ICO price.

[Iluka]

Untill crypto market woun't recover, 90% of ICO will fail after exchange listing. Everyone afraids and sell coins after listing, thinking that it can be purchasing back in cheap price.

[abojamal]

Many reasons mentioned by guys
I would like to add to it

- Market status and btc dominance
- Pricing ico may be overpriced
- Some fail  ico projects have a negative impact

[Endikadija]

I do not know why this is happening, but I like the excuse of managers and developers of the project, the fact that it is all the fault of bounty hunters.

It's happening when there was no a lot of support in the market after that coin being listed on the exchange site and remember the bounty hunters have made the situation even worst dude. So many people are still confusing about that but it looks so easy to understand about that.
in fact that the hype will affect the result of price and support

[Muzika]

It is all because the bounty hunters sell their coin immediately after acquiring it from the project team since they sell it and ofcourse it was sold by the group of bounty hunters the coin price will drop.

[Ararbermas]

It's just a coincidence mate because market still stagnant which is common reason why ico token price  suddenly drop as well, but don't worry keep holding because soon if the market gain enough strength to stabilize, the token price from that ico will gradually increasing again as well along with bitcoin and other alternative coins in the market just put more patience don't be hasty .

[Veter2000]

Well obviously its because a lot of bounty hunters are immediately dumping/selling their coins massively after receiving their rewards from their respective campaigns. This can really bring a coin/tokens price down because mostly would accept any price lower as long as their coins/tokens are sold.

The fact that bounty hunters sell the coins they received is nothing wrong, and the price falls as there is no secondary demand for these coins after the end of the ICO, there is no product, there is no news about development, and the like.

[Iamlegit4sure]

A lot of ico tokens and coins drop in value after ico. This is probably due to the fact that right now we are in a strong red bearish market. And it is also due to the fact that 90% of ico are not solid projects, they have not solid team behind them and they lack vision. A lot of tokens are really useless, and have no working product, so it is only natural that the value will drop once they hit the market