WHY DO NEW PROJECTS PLUMMETS AT FIRST MARKET ENTRY

[guoyu78]

RECENTLY, most new projects that hit the exchange for the first time always have a negative ROI for days, weeks while some weeks. such have lead to the demise of some tokens due to poor trade.
what exactly could be the cause.

The simple answer to that is called “DUMPING”, and this became rampant ever since people no longer believes in the long term existence of these projects, so many people you see invest in ICOs are not going to hold their coin or fund longer in the market again or keep it for further increase, as soon as they hit market and they get whatever profit that, it is either they pull out from such project completely, or they look for more reliable projects which are usually older projects like Bitcoin to invest the capital/profit in as future investment. Old projects are still far better and more reliable than the newer ones.

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[Crypto5060]

RECENTLY, most new projects that hit the exchange for the first time always have a negative ROI for days, weeks while some weeks. such have lead to the demise of some tokens due to poor trade.
what exactly could be the cause.

It's normal for people to want to take profit given ICOs are not sold at the same price, early investors are always in profit and ready to sell once there is a market for such project.

[davinchi]

RECENTLY, most new projects that hit the exchange for the first time always have a negative ROI for days, weeks while some weeks. such have lead to the demise of some tokens due to poor trade.
what exactly could be the cause.

Because, people invest money into a project not caring about how good it is or how great it could potentially be and they only invest caring about how much the rate is and how much discount they are getting. If you can invest into a new coin that is normally 100 satoshi each but they are selling you 40 satoshi each with their 60% discount for early investors and when the coin is listed on the first exchange it will be listed on 100 satoshi at first minutes until someone starts to sell, what would you do? Wouldn't you buy it too?

See, there is no talks about if the coin is good or bad or has a future, nothing at all, we just talked about the finance of it. Of course, people see this as opportunity and fund it and get their coins and sell it as soon as it is listed which makes it go down on the early days.

Seems to me that most projects too are just creating trading coins and no longer utility coins that will be useful for the future. Many really projects rights in their whitepaper very good solutions to some certain challenges that blockchain technology can resolve but in the end of it, they divert completely from this goal and then turn it themselves to a money making scheme, where they request for funds without executing any physical projects.

So why should an investor really hold these coins for a long term. I would really do the same to if I was these investors, Imagine me buying something at 40 satoshi and then getting an increase of 2x, what more return do I need that will make me keep such investment till future?

[prehisto]

It's not "RECENTLY" but this has been going on since the last year (or earlier).

Right! This is nothing new, good part of the projects since the start of Token sale trend, lose some of their value upon entering exchanges. It depends on a lot of things, but the most important is token lock period for bounty participants.

between the two, it's usually the investors who dumps more.

Wrong, bounty hunters absolutely are to blame for dump. Investors dont go crazy with dump as fast as coin reaches exchange, they did not invest to take loss. But bounty hunters dont care, they just want to sell and make some money as fast as possible.

[Leonardo7]

Sometimes the team are not meticulous enough when doing a give away doing airdrop and bounty, since they don't know if they will actually raise enough fund, they tend to panickly do unguided referral program, and when the dumpers come, they can't help it than allowing a free fall and later to buy back at a lower price, before price stability for good projects.

[Questat]

That trend hasn't change, still the trend that we are witnessing, it has not change as most project are launch in a small exchange, also with lack of liquidity, the price would easily be affected especially if the bounty hunters will dump their reward without considering the price.

If that was an IEO, maybe there's a chance a price will rise, but exchange is also a big factor, if it's in big exchange like Binance, I'm seeing a possibility that it will not dump.

[Apes]

when coin or token has an exchange market, prices fall because private investors sell in big numbers. so don't blame bounty hunters because bounty hunters get their reward after a few weeks or months later. another story if the project is promising, although many who sell it, the prices will not fall and continue to survive because of high market demand. but this rarely happens.
in this period the developer has a strong influence on the market to stabilize price during a crisis, they must give confidence to the market towards in their project.

[Crypto5060]

It's not "RECENTLY" but this has been going on since the last year (or earlier).

Right! This is nothing new, good part of the projects since the start of Token sale trend, lose some of their value upon entering exchanges. It depends on a lot of things, but the most important is token lock period for bounty participants.

between the two, it's usually the investors who dumps more.

Wrong, bounty hunters absolutely are to blame for dump. Investors dont go crazy with dump as fast as coin reaches exchange, they did not invest to take loss. But bounty hunters dont care, they just want to sell and make some money as fast as possible.

Do hunters always have to get blamed for dump in token price? Most times during token listing bounty allocations are always locked yet price drop on exchange when compared to ICO price. People take profit both investors and hunters. If I'm an investor and I no longer believe or agree with a project ideology I sell off my position once listed.

[StatesManG]

RECENTLY, most new projects that hit the exchange for the first time always have a negative ROI for days, weeks while some weeks. such have lead to the demise of some tokens due to poor trade.
what exactly could be the cause.

It's not "RECENTLY" but this has been going on since the last year (or earlier).

What are the cause?
1. Investors from private sale, pre-sale, ICOs starts dumping and take their profit.
2. Bounty hunters dumping their rewards.

between the two, it's usually the investors who dumps more.

let me put it straight with this. I don't think this has to do with the bounty hunters. I know a project blockmason link that was traded on 3 or more exchanges after its iEO at its original price of $0.01 to 0.008. This trades was maintained before the bounty hunters distribution.

Now the irony started after the bounty distribution, first no hunter can deposit on any of this exchanges.  So they couldn't sell. Then on the day one of the exchange decided to open the deposit functions,  price plunged to 0.001 before the hunters would even start depositing.  Now the question was, who then pulled the price down? Definitely was not the hunters but the team will block anyone who dares to talk about trades on their channel. 

[prehisto]

Do hunters always have to get blamed for dump in token price? Most times during token listing bounty allocations are always locked yet price drop on exchange when compared to ICO price. People take profit both investors and hunters. If I'm an investor and I no longer believe or agree with a project ideology I sell off my position once listed.

No and no.

First of all, investors mostly are there for the long run , they understand that development takes time , this means that they are patient.
I have participated in many bounties over the years, very few, I would approximate them as 5% of all projects do lock their tokens for bounty participants.

[xenomorphe1]

Some projets plummets because investors who get a lot of bonus think that the profits are enough and they decide do sell their coins.
It is because thoses investors maybe don't really care about the project. And because the project still has nothing except its coins.
Some investors follow the selling pressure because they see that the coin is losing more value and they don't want to hodl a coin at loss.

[maldini]

Token dump is the usual situation in the down trend market, especially in 2018. It was barely seen any pump after listing in the previous year. The main reason, in my opinion is that people sell out their tokens after listing while there's much less buy demand. Those sellers includes investors, bounty hunters and even project developers Gclub .

Yes, but now the market conditions are not in a bearish state, the current market trend is turning to bullish. Maybe this situation is still affected by fundamentals in 2018 when all token holders will immediately sell their tokens after they are listed on the stock exchange.

[Indrawan77]

Yeah the performance of ICO become worse and worse the reason is because the investors dont really want to invest, they just want for quick profit, after it hit the exchanges they will dump and look for another project, the developers also lazy to develop further when they see the enthusiastic is decreasing

[alian17]

Because many investors get tokens at the lowest price in the early stage of the project. So once listed, they are sold for profit. At the same time, the holder of tokens obtained through marketing, airdrop, reward and so on. They will sell for profit. So a project investment needs to look at long-term growth space. Don't see short-term profits.

[abuhazzan]

The price of projects will definitely plummet when listed due to some factors which include, but not limited to: lack of strong and cohesive communities, lack of communication between the team and the community members, listing on low volume exchanges, etc

[RealMalatesta]

I can suggest two reasons. The first is that the project’s coin is not interesting to anyone, which is often the case and the token falls in price. The second is that the project is under development and the market volatility is small.

I don’t think it is really based on the fact that the project is not interesting, we still have lots of interesting projects in the market that were still very interesting to the point they were about getting to an exchange, but yet, they still get dumped as soon as they enter exchange and end up discouraging other intending investors that didn’t participate in pre-sale.

I think the major reason I feel these projects gets dumped nowadays despite the solid project they have been able to convince us that they have is because people are very sacred of developers now, and they are beginning to see that they only come up with ICO’s to raise money, so they only want to invest in presale, and then pull out when the ICO price increases as soon as it gets to an exchange for profit, and then move on.

[installer]

Almost every single token/coin that gets listed not on Binance or Huobi is decreasing in price dramatically. This is the fault of the main team, because they did not make people to buy their coins even after the end of TGE.

[wesk1212]

It also seems to me that this is a normal situation when there is healthy competition and stronger projects win and go further, while weak ones remain at the end of the list.

[inge]

So it's good the other way around.  A new project that seemed to the world is not interesting to anyone and it suffers a fiasco.  The rest continue to work and develop.