WHY DO NEW PROJECTS PLUMMETS AT FIRST MARKET ENTRY

[BayAngelo]

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.

[rosezionjohn]

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.

[chichidori]

One of the reason is large airdrop tokens another would be a money grab project once the ICO sale is done devs wont even communicate with the community, early adopters will sell for any profit rather than losing.

[Nalbo]

It depends on the distribution and holding of the tokens.
The tokens on it's pre-sale are much more cheaper than the ICO price. Sometimes half the price.
After the token gets listed, the initial price are generally around the ICO price which is 100% profit for the early investors. So, they put on a sell wall and keeps on decreasing the price. This starts a panic sell from every investors leading to low price of the coin.

[tabas]

Investors dump it fastly, there's no other reasons for that. Everyone is probably dumping that token including the developers. It's no surprise anymore if they keeps on happening.

[alrose]

It depends on the distribution and holding of the tokens.
The tokens on it's pre-sale are much more cheaper than the ICO price. Sometimes half the price.
After the token gets listed, the initial price are generally around the ICO price which is 100% profit for the early investors. So, they put on a sell wall and keeps on decreasing the price. This starts a panic sell from every investors leading to low price of the coin.

I do not think it is necessary to carry out the listing of tokens of the company which only raised funds for its development.Such actions of the company just discredit investors.I believe that the listing should occur only when there is a finished product.

[jessyj48]

Its because many new projects are weak ,they introduced only what has been available in crypto space already ,no new idea to bring value to there tokens ,its one of the reasons I investigate projects very well so that I won't end up promoting shit projects

[Iyanu14]

Since bear market started many coin has entered market and plummet whereas some increase immediately, the problem is not the bear market, the quality of project in question has a lot to do with their success in market.

[tonyvo2017]

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.

But there is no such incident at big exchange. Bittrex has made investors disappointed in VBK and it has returned to STPT for x8 after listed on exchange. currently the IEO is still a fever of crypto market but it is only effective for large exchange.
Small exchange will not be as effective and I think they can only be kept at mediocre prices.

[Lagonda]

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.

[Bitbtc8]

The first one is lack of good project idea and the second on is many project fail to get listed on very good exchanges ,we have many exchanges with fake volume in crypto space and the third part is presale, giving presale investors too many bonus so when they finally get listed many will have no choice but to dump

[MonsterV]

This is normal in my opinion since 2018, of course this is caused by investors who directly sell their tokens after the exchange list. Investors who buy through private sale, pre sale, sale tokens at low prices, on average expect higher values after the exchange list so they sell all their tokens.

But also many people accuse the bounty hunter of doing this and I don't think that's the case, because there are several ICOs without having a bounty campaign and after the exchange list the price remains negative.

[sidkz]

new coins do not lead to good exchanges
where everyone is trying to sell tokens as quickly as possible
because of this, the price drops dramatically

[CryptoLogo]

This has always happened, it is not a recent phenomenon. This happens because most investors start selling large amounts of coins at the same time.

[bittraffic]

They all plummet because everyone dumps the token for BTC to profit. I'm not sure if they would exchange those BTC to fiat but I guess that's the aim though. Maybe BTC isn't really the most important for anyone in crypto. I always thought it is but if people are dumping the tokens the first chance they get, it must be worth dumping. It always take time before going up again. And by then you can say they never bought them back but only the new investors are buying,.

[CryptoAlphaStar]

There are a lot of whales that bought at huge secret discounts and they unload the moment they can.
There can also be a fake high open, so the team can list in their resume that the ICO opened at a high price.

[hdclover]

Investors who bought the tokens at a huge discount will definately dump their bag of the price is good. Team members and advisors might also dump.
Why would people sell for a lesser price?
Fear kicks in the minds of the investors as the price goes down. They sell at a even cheaper price to prevent further losses.

[kindbtc]

For me i think although there are many factors that result in dumping but what i have found is that low interest in the icos due to long bearish market is the most significant reason. Once bullish market is back and everything is booming we will see the effect passing onto ico tokens as well.

[DeepChipolino]

There are a lot of whales that bought at huge secret discounts and they unload the moment they can.
There can also be a fake high open, so the team can list in their resume that the ICO opened at a high price.

What are these discounts? if a dump occurs sometimes in a matter of hours at many tens of percent. All these dumps seem to be pulling money out of suckers. If there are few newbies, then it is surprising that there are still such clients on the market.
The biggest reason for the fall in asset prices is the lack of security. Security can create demand. If there are no more investors who would like to buy after ICO, then the market is empty. In this case, even bounty hunters with their 2% can dump the price.

[serjent05]

Aside from the investors and bounty hunters dumping, the community of a project is too small to support the buy wall of the token.  Other developer solve this problem by locking the distributed token in span of sometime while building the economy of the token. 

What are these discounts?

Discounts are given to the early investors such as private investors , pre-ico price is given to them, wherein the price is at most 50% discount of the original ICO price.

The biggest reason for the fall in asset prices is the lack of security. Security can create demand. If there are no more investors who would like to buy after ICO, then the market is empty. In this case, even bounty hunters with their 2% can dump the price.

Care to elaborate this security you are talking?  And how does security create a demand?