After ICO, the tokens sank in price. Why?

[SirLancelot]

As a rule, most blockchain- projects that have collected tens of millions of dollars for ICO, issue tokens on the exchange without real production growth.
What does it mean?

That's how it's been. After the ICO bounty hunters will sell their tokens, cause none of them are ready to hold it, they will just sell it for a coin they think is better. This time around it has become a normal thing for both the investors and the hunters, once the ICO is over, majority of them will sell their coins, causing the price rate of the tokens to drop. The same thing is what we are now seeing in IEO as well, people are now dumping IEO immediately the project is over they will sell their coins. It's become a normal thing, only coins that has a strong vision and able to make investors believe in them can survive such things.

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[FUD Expert]

As a rule, most blockchain- projects that have collected tens of millions of dollars for ICO, issue tokens on the exchange without real production growth.
What does it mean?

This is not new and I believe it only started because of the bear market. And this is also the reason why many projects shifted to IEOs and I was suprised that it succeed and made investing in startups alive again. Even the not so popular exchanges that lauched their IEOs have made their IEO price stable after listing and it did not go below than that.

[EdenHazard]

Most projects have no real development and they are just hype.  Developers are in it for a quick profit and as soon as the first pump or exchange listing happens they are exiting.  I don't want to lump every project in the same boat because there are some honest devs out there though.

And the result is will give a negative impact for crypto industry, a newcomers will consider that cryptocurrency especially for new project as a junk and have no future. The more people who feel the loss from the results of ICO investment, then the more negative appraisements for cryptocurrency. I think this impact will have an effect on the overall condition of the market cryptocurrencies not only on the ICO.

[Mahanton]

As a rule, most blockchain- projects that have collected tens of millions of dollars for ICO, issue tokens on the exchange without real production growth.
What does it mean?

One simple answer.If a project didn't present any working product after they had raised millions of dollars and being traded on exchangers are really shit ones.
Expect for it to bite to the ground later on.Only those projects who do have potential or actual usage will sustain.

[LogitechMouse]

3 words. To Take Profit.

This is the main reason why all of the ICO always sank in price. Bounty hunters, investors and even the team itself sell the tokens to get some profit making the price plummet. After that, it will depend on the team if they will continue the project or not. If they will continue then well and good but if it is not then it will be a scam and those who sold their tokens and got their profit are happy .

[hurry_hore]

3 words. To Take Profit.

This is the main reason why all of the ICO always sank in price. Bounty hunters, investors and even the team itself sell the tokens to get some profit making the price plummet. After that, it will depend on the team if they will continue the project or not. If they will continue then well and good but if it is not then it will be a scam and those who sold their tokens and got their profit are happy .

I agree that price dump after ICO caused by taking profit, but the question is/are who. I am not sure if bounty hunters as a party to cause the price until huge dump, it can be calculated not too be sure. Their tokens received from bounty just in small amount refer to the circulating supply after ICO.

[Nellayar]

As a rule, most blockchain- projects that have collected tens of millions of dollars for ICO, issue tokens on the exchange without real production growth.
What does it mean?

It means that ICO token price becomes weak if it hits in exchange. A lot of ICO sank after the fund raising because they don't have development. It is hard for an ICO to maintain its price during their public sale up to exchange. They blame bounty hunters for selling coins in a low price. We will not sell in a price that we are also lose, the price dictates by initiator.

[noormcs5]

As a rule, most blockchain- projects that have collected tens of millions of dollars for ICO, issue tokens on the exchange without real production growth.
What does it mean?

For a coin to be successful there has to be a use case for it. Without any practical use, only the hype and news cannot make the coin valuale in the long run. Most ICO coins have no real use case and are made to collect money only from the investors.

[Zemomtum]

It is not the absent of use cases that makes the token listed to fall. Some project use to give insane bonus up to 70% off the ICO price without locking period for whale investors, so they dump when it get listed on any exchange. Similar things will still occur to this emergence of IEO of a thing.

[fourpiece]

Thats a normal thing that happen when a.coin is listed on its  first exchange. Holders will cashout thier profit to invest in another project while other want to acculate more  and they want the price to go down.

[bitbunnny]

Obviously that was just hype without real background. Bad judgement and project that had no future and ICO showed the real picture. Unfortunately there are too many such projects where developers are just greedy for profit and at the end users lose their money. No real business case, no money, that is how it's functioning, don't forget that so be very careful which coin.you choose.

[Slow death]

Most of these ICOs are project to solve Internet problems and many of these ICOs have the illusion that your project will have a lot of demand, what happens is the following:

during the ICO only the investors and the bounty hunters know the project, and when the project is listed in some exchange, they do not have demand, it has no new buyers... everything that follows is:

investors, bounty hunters and Dev's sell their coins. and the same investors and bounty hunters come back to buy it again when the price is low and the cycle repeats itself

[milewilda]

3 words. To Take Profit.

This is the main reason why all of the ICO always sank in price. Bounty hunters, investors and even the team itself sell the tokens to get some profit making the price plummet. After that, it will depend on the team if they will continue the project or not. If they will continue then well and good but if it is not then it will be a scam and those who sold their tokens and got their profit are happy .

Why people cant really realize on whats the main purpose or reason why we do invest into projects?For profits indeed.
Selling everything which way more higher price than on their purchased price.The sad thing is here that most dev or owners
are the ones who do majorly dump of their own tokens for the sake of taking money out of its investors which simply turns out to be a scam.

[FOPL]

it simply means the project will die out eventually. This might be due to lack of working product, token utility, and no better token economics

[Nellayar]

As a rule, most blockchain- projects that have collected tens of millions of dollars for ICO, issue tokens on the exchange without real production growth.
What does it mean?

Well, hype gone and the demand gone. If a token/coin does not have real value then they will fall. Out of the few thousands of crypto in coinmarketcap you will find 99% of them are useless. So do not expect much.

The same is going to happen with these IEO hype too.

Only 2% of the coins in CMC are real, many coins are only for hype. Many projects are just listing their tokens at exchange because of their funds raised during ICO. And scammers made it to have more profits with their investors. When they hyped the coin, soon it will die because there is no product. At the end, we bought the shitcoins for the rest of our life

[tukagero]

it simply means the project will die out eventually. This might be due to lack of working product, token utility, and no better token economics

thats the few reason why a token sank after getting listed on exchanges, you forgot to mention " team dont have enough money to continue the project or else the team is consist of scammers.

[diazepam666]

As a rule, most blockchain- projects that have collected tens of millions of dollars for ICO, issue tokens on the exchange without real production growth.
What does it mean?

Real production and growth means what you are trying to say about it exactly?
Normally every ICO project collect the funds from the invested at the period of token sale and after some cooling period devil list their tokens on any exchanges. At the time of listing or before that most probably investors and their marketing participants will receive the tokens. Since the value fluctuation heavily impacted coin value will be fall down.

[monalia]

it simply means the project will die out eventually. This might be due to lack of working product, token utility, and no better token economics

thats the few reason why a token sank after getting listed on exchanges, you forgot to mention " team dont have enough money to continue the project or else the team is consist of scammers.

Nowadays to get allocation information is easily accessible in internet. So that is used not a matter here for the reasons of tokens sinking. Then if the team is come they will not go to list that tokens on any good exchanges.
When the time by limits for the tokens in the exchanges has been reduced, we will find the the price changes to low in coming days.

[jhongzjhong]

3 words. To Take Profit.

This is the main reason why all of the ICO always sank in price. Bounty hunters, investors and even the team itself sell the tokens to get some profit making the price plummet. After that, it will depend on the team if they will continue the project or not. If they will continue then well and good but if it is not then it will be a scam and those who sold their tokens and got their profit are happy .

Why people cant really realize on whats the main purpose or reason why we do invest into projects?For profits indeed.
Selling everything which way more higher price than on their purchased price.The sad thing is here that most dev or owners
are the ones who do majorly dump of their own tokens for the sake of taking money out of its investors which simply turns out to be a scam.

Definitely, this is right. The fact that bounty hunters are always a profit hunter, not a holder maybe there are some but usually to them they are going to sell token after listing in the market and of course that may cause of the price sank and might can't recover and become a shit project. Good thing if the project had a buyback strategy to their bounty hunters that for sure after listing they will sell. But all of these will depend on the project if how worth it is this.

[Stage3]

Hey mate,

I do believe it is because there are to many Pre ICOs and Bounty Hunters.

What do i mean with that exactly. If you sell tokens on a 30% discount the investor will sell those tokens with a almost guaranteed profit on the day of the launch on an exchange. The Bounty hunters might do the same at the same time to get still some money out for their free tokens.

If you calculate that all together it is definitely one of the main reasons the prices sink after an ICO. As i plan my own ICO currently, we have the same discussion and believe that Bounty Hunters should only get a max. of 5% of the total token supply, furthermore there is no PRE ICO with big discounts. Thats currently the only solution i see, to keep the token stable and potentially gaining momentum after an exchange launch