Token price dropping after ICO, why so?

[tadpole_bitfrog]

I have taken part of some ICOs and everytime their token price goes down after the ICO.. why is that so?


EDIT:
oh, nice.. that was helpful and pretty much what I was looking for.. thanks for sharing

Hey

That might be helpful for you to understand the reason behind it - http://cryptoandblockchaintalk.com/why-do-prices-drop-when-an-ico-ends-27

Take care!

Because it is a bad project or its capital was not good enough to make the token's value higher than the ICO. They often use the money they attract from investors to negotiate for being listed on some exchanges and hold. So the token value is reduced but if they burn the token, that would be a good option.

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[batang_bitcoin]

Token rates drop after the ICO period, primarily due to bounty members selling Token after Token is indexed on exchange floors. But this reduction in exchange rates occurs only in a short time because the total number of Token for bounty accounts for only 5% of the total supply Token.

I have read again this that the bounty hunters are being blamed. 

AFAIK most of the allocations for bounty hunters are around 1%-2% or higher up to 5% but the rest goes the team itself and investors. Ask the developers if you see massive sell offs for that token from the developers.

[jawakoak]

In ICO presale it was big discount , some times 50 percent and more, thats why price dropping when hit exchange, it actually not happen with ICO have real product with good demand and supply system. buy wall can eliminate this problem.

[icohunter1024]

Most ICOs have no value at all so I think the token price is lower than the ICO price I think is normal. I only feel it unusual when prices rise too high after the ICO end.

[OrangeII]

Token rates drop after the ICO period, primarily due to bounty members selling Token after Token is indexed on exchange floors. But this reduction in exchange rates occurs only in a short time because the total number of Token for bounty accounts for only 5% of the total supply Token.

well, the reason used by dev is that they can't control the market. of course not all ICOs are like that. however, most, after the ICO, many investors sell the assets they have, so the price of coins decreases. well, the only way to increase the price is to improve product quality

[jonhn772]

After being listed ico's token on any exchange, its price has decreased continuously. Because the ico's investor starts selling the token and bounty hunters also sells their tokens. And for these reasons many ico token prices are dumped.

[xenomorphe1]

Because if the price is higher than the ICO price, some ICO investors are going to sell their tokens. And some bounty hunters may sell their coins too. Some people having no patience could also sell their tokens, or if they think that the price is going to fall more to rebuy at a lower price. It is really difficult to know how much a token is going to be worth at the exchange.

[bhabygrim]

Most of them is due to the investors taking their profit,
And sometimes the developer are leaving their own project.

[Kurokonobasuke]

I think the market situation that we are having has something to do with the negative outcome of the projects this year. As we can see, the market is filled with red marks which might negatively affects the ICO projects being released in the market. Despite of the potential of the projects, the price of the tokwns are mostly falling continuously upon being listed in the market so maybe that is why.

[masterkiller]

There are many possibilities that cause that to happen,
1. The development team is not very good at developing their project
2. Investors who are impatient and want to immediately benefit from their investment
3. ICO SCAM
4. fatal errors that occurred in the development of the project that caused investors to lose trust

Maybe that is some reason for ICO prices falling at cheaper prices

[AK47-]

In bear market people don't have the tendency to take risk, so they avoid getting into coins with low cap or relatively new ones. Usually, investors too sell at low price if they can't wait. Bear market isn't really good for conducting ICO I think. Moreover, bounty hunters add to the problem by selling at cheaper price.

[waaat?]

There are many possibilities that cause that to happen,
1. The development team is not very good at developing their project
2. Investors who are impatient and want to immediately benefit from their investment
3. ICO SCAM
4. fatal errors that occurred in the development of the project that caused investors to lose trust

Maybe that is some reason for ICO prices falling at cheaper prices

Not bad.
But I think more important that too many private and closed sales for investors and funds. They buy by very cheap price and after sell with good profit but don't need to wait a big growth. And it's main problem for me. From one side, funds are good, but for profit it's very bad especially without locks

[WillyZ]

There are many possibilities that cause that to happen,
1. The development team is not very good at developing their project
2. Investors who are impatient and want to immediately benefit from their investment
3. ICO SCAM
4. fatal errors that occurred in the development of the project that caused investors to lose trust

Maybe that is some reason for ICO prices falling at cheaper prices

Not bad.
But I think more important that too many private and closed sales for investors and funds. They buy by very cheap price and after sell with good profit but don't need to wait a big growth. And it's main problem for me. From one side, funds are good, but for profit it's very bad especially without locks

Yes, I agree with you. I think locks are essential in these cases.

[yountt2]

The reasons for ICO token been devalued after listing on exchange are many,  if a token is not listed on a proper exchange that has volume,  liquidity and traders,  such token will lose lots of value in the days of listing.  Another factor is Dex,  if Dex is the sole exchange for a token,  there will not be control and value of such token may plummet!

[X-ray]

There are many possibilities that cause that to happen,
1. The development team is not very good at developing their project
2. Investors who are impatient and want to immediately benefit from their investment
3. ICO SCAM
4. fatal errors that occurred in the development of the project that caused investors to lose trust

Maybe that is some reason for ICO prices falling at cheaper prices

Not bad.
But I think more important that too many private and closed sales for investors and funds. They buy by very cheap price and after sell with good profit but don't need to wait a big growth. And it's main problem for me. From one side, funds are good, but for profit it's very bad especially without locks

That should become the main concern, we don't know about how much bonus has been offered by the team to the ico private sale investors. They will dump their token instantly if they have been getting huge bonus from the private sale. This is unfair for me personally. This makes the price of token getting dumped so hard.

[pro100j]

few main reasons of price dropping after ico and possible scam alert is not having escrow, not providing evidences that ico really collected something, not just some numbers on the site. there is lack of trust to icos with that kind a things, i dont know why people should invest if they dont see a transparency anymore 

[Fredomago]

few main reasons of price dropping after ico and possible scam alert is not having escrow, not providing evidences that ico really collected something, not just some numbers on the site. there is lack of trust to icos with that kind a things, i dont know why people should invest if they dont see a transparency anymore 

Most of the time, fake project also lied with their investors showing a huge numbers of supports but nothing to provide proofs, so after reaching the exchange dev itself are dumping their coins as they knew that there's no supports that will be created to their projects, its really hard to invest now
much better to buy existing projects that already have good numbers of community and usable products.

[HellDiverUK]

few main reasons of price dropping after ico and possible scam alert is not having escrow, not providing evidences that ico really collected something, not just some numbers on the site. there is lack of trust to icos with that kind a things, i dont know why people should invest if they dont see a transparency anymore 

Most of the time, fake project also lied with their investors showing a huge numbers of supports but nothing to provide proofs, so after reaching the exchange dev itself are dumping their coins as they knew that there's no supports that will be created to their projects, its really hard to invest now
much better to buy existing projects that already have good numbers of community and usable products.

the fake sales figures posted on the website of an ICO, for example, there is a statement presale has been completed or the softcap is reached, it needs to be suspected even though it is only to attract investors.

[Alijiindahaus]

few main reasons of price dropping after ico and possible scam alert is not having escrow, not providing evidences that ico really collected something, not just some numbers on the site. there is lack of trust to icos with that kind a things, i dont know why people should invest if they dont see a transparency anymore 

Most of the time, fake project also lied with their investors showing a huge numbers of supports but nothing to provide proofs, so after reaching the exchange dev itself are dumping their coins as they knew that there's no supports that will be created to their projects, its really hard to invest now
much better to buy existing projects that already have good numbers of community and usable products.

the fake sales figures posted on the website of an ICO, for example, there is a statement presale has been completed or the softcap is reached, it needs to be suspected even though it is only to attract investors.

Today, many investors use this strategy and buy coins on the stock exchange after listing, and not on time the company ico, because it is much more profitable. But the lack of investment during the ico of companies negatively affects the development of the project.

[Silberman]

It is not really some kind of great mystery why this happens, people have lost faith in icos, the market is in a really bad shape as we are seeing right now with the prices going down in a very significant way and when you add that most of the projects are not really original and are based on other projects that most likely failed as well then you have all the necessary reasons of why this happens.