Token price dropping after ICO, why so?

[aeternus]

I think because of some reasons:

1- The crypto market is bearich.
2- Most of ICO's don't have a good team.
3- They don't plan to create a real good community of real investors.
4- ICO price is sometimes overpriced.
5- They didn't collect enough funds in ICO.
6- They gave a lot of money in Airdrop and Bounty... etc

For what I have seen in the market the most important reason why the price goes down after the ico is the number four reason that you give, the price of the coins is simply too high and it is impossible for the price of the coin to go up when its price was four or five times its real value, let the market decide from the very beginning what it is going to be the price of the coin and magically the price will stop to go down after the ico.

[Dpat]

The token prices are always depend on the market condition and the demand & supply of the coin. So, when the market condition is in crash and all the trader and investors are going away of their investment so the demand for that token or coin go down so the price also affected and decline. Finally, when the ICO is running in a crash situation after lunching of the token in exchanges so the market affect the whole and the token price dropped immediately.

[thuthanh]

Most of the tokens are dropping after the ICO because at this time the market is decreasing and many developers could not preserve ICO price as they expected.

[rltim555]

There is no demand at all, that's why price is dropping after it. All icos tokens worth nothing, so it is not attractive for investors.
That's why price is dropping so far

[mace15]

There is no demand at all, that's why price is dropping after it. All icos tokens worth nothing, so it is not attractive for investors.
That's why price is dropping so far

I agree, mostly price decreasing because of no demands. This is usually happen investors sell their coins to take profit which makes price drop. Also no development on their project that obviously their is no trust by new users or investors.

[dobladi]

In my opinion , that's normal. Most of the ICO tokens' market value are falling immrdiately upon being listed on different exchangers simply because many investors and bounty hunters are selling at that moment. The increase before on the market prices of a newly listed coin, starts after a couple of weeks of being listed but the situation right now is a problem. All cryptos are having a hard time to have an increase due to continuous downtrend.

[Neilobit]

Maybe Team ore Angle (early) Investor dumping

[go4crypto]

Some fall immediately after token starts trading is due to bounty hunters and other early investors taking profits. But these days the main cause is this long bear market correction. Once market becomes bullish, there will be more positive moves in the tokens.

[bchain22]

Some fall immediately after token starts trading is due to bounty hunters and other early investors taking profits. But these days the main cause is this long bear market correction. Once market becomes bullish, there will be more positive moves in the tokens.

Yes, would be fun to see what happens when the next bull-run comes. But that might take long time.

[SummerBliss]

What i have seen is that bounty hunters can be a reason for the drop in some cases. But nowadays, the investors panic as well. They might be less in number but in the starting volume is less as well. So panic sellers can bring that dump which creates further panic. Listing an ICO token while in bear market is risky.

[moneymakescents777]

Buying now will bring handsome returns within a few short months

[distr@yopmail.com]

I think that would be reasonable, when the beginning is registered in exchange with a small trading volume, and many will sell for sure the price of the token will drop. Whether selling from a bounty hunter or investor is not important, it is clear that everything depends on the team's strategy and how to maintain the stability of the price of their tokens.

[Fedrey]

I think that would be reasonable, when the beginning is registered in exchange with a small trading volume, and many will sell for sure the price of the token will drop. Whether selling from a bounty hunter or investor is not important, it is clear that everything depends on the team's strategy and how to maintain the stability of the price of their tokens.

First of all, Everything depends on the state of the cryptocurrency market, because investors and Bounty Hunters have always done their work, but the results are completely different if we compare 2016, 2017 and 2018.

[Froganz]

Now is a great time to invest in Altcoins. many of them are in a very good position. I advise buying now and waiting for growth

[Farma]

What i have seen is that bounty hunters can be a reason for the drop in some cases. But nowadays, the investors panic as well. They might be less in number but in the starting volume is less as well. So panic sellers can bring that dump which creates further panic. Listing an ICO token while in bear market is risky.

sometimes investors, and bounty hunters are also the main cause because they want to make a profit. well, because sometimes many people are attracted to a high enough price, and then sell these tokens in large quantities, which is why prices always drop after distribution.

[WillyZ]

What i have seen is that bounty hunters can be a reason for the drop in some cases. But nowadays, the investors panic as well. They might be less in number but in the starting volume is less as well. So panic sellers can bring that dump which creates further panic. Listing an ICO token while in bear market is risky.

sometimes investors, and bounty hunters are also the main cause because they want to make a profit. well, because sometimes many people are attracted to a high enough price, and then sell these tokens in large quantities, which is why prices always drop after distribution.

Yes, bear market can be the cause here as well. People just don't put their money into something that easily anymore.

[rltim555]

man, forget about ICO, market is full of cheap altcoins with high hype level and now all what you have to do is just buy cheap altcoins!
Don't select risky assets!

[WillyZ]

man, forget about ICO, market is full of cheap altcoins with high hype level and now all what you have to do is just buy cheap altcoins!
Don't select risky assets!

This is a good point as well. But, still there are great projects that are going to launch their ICO's, so I see no point to just completely stop investing in ICO's. Though I also agree with your statement. Just some research on upcoming ICO's is needed.

And remember, not all tokens prices are falling after the ICO. It all depends on different factors that are discussed in the thread here.

[TVTVI]

My personal point of view is not to mention bad projects:
- influence from the bear market.
- lack of investment from reputable financial investment funds.
- The correlation between ETH and ICO, the token price is governed by ETH. Projects tend to sell off ETH to spend money on project development.> ETH dump -> token dump

[ymirymir]

Maybe one of the reasons is most bounty hunters are dumping their bounties once rewards are distributed. Also, it could be that pre-ico investors, who got good discount during the pre-ico stage wants to earn fast money once altcoin hits the exchange. There are actually a lot of factors that affects the price of an altcoin after their ICO.