Why drop in price when listed on exchange market?

[Xardasim]

The poor price of Bitcoin until recent months causes the new listed coin to be traded at a lower price. On the other hand, people lose confidence in coins that have existed for years, which is more bagging in newly created ones, and that is the other reason.

[Unfunnybtc]

The price falls because people are afraid of losing all the money and sell under the influence of panic, or because the product was useless and did not attract attention.

[TopTort777]

I think that there are devs, that drop price by selling tokens/coins after thet didnt succeed in ico/ieo.
Who else can do it? Investors - doubt that, why would invest in something you wish to sell soon. Bounty hunters can not also do that. Their token pool usually are 5-10% of all issues tokens/coins.

[JuliaJi]

I think all projects need to support their currency after listing, they dont do it and thats why price is falling

[Koobtcgal]

This is very simple because these days, there are a lot of scam projects who will give as much as 100% to token as a bonus for buying in presale. Do you expect this person to hodl their coins when they can sell both the bonus and their coins bought to get x2 of their principal? It's normal for the prices to drop that way due to high bonuses. Another point is that devs dump their tokens early because they didn't make much from their ICOs so that is a way of selling their coins.

[pelumi20]

I really think the main reason why most project tokens dump once they hit the exchange is because they lack a very good product to command demand for their tokens. Though there are other reasons like low volume on the exchange but the absence of a product is the main reason.

[chriseasan]

There are several reasons for such a fall. First of all, there are bounty participants that are dumping their tokens to get at least something from their programme. Secondly, it is the lack of management and promotion from the team members. The last but not least is the exchange where those tokens are listed at.

[halpi]

There are 4 possible reasons.
Price of purchase is defferent. Like, you bought 1000 tokens for 1 ETH. ETH has dropped/rose and the price has changed.
Someone from the team sells its tokens.
Early investors with huge discount sell their tokens.
The project has lost trust.

[MikeyVeez]

It depends on the exchange where the coin is listed.
Look at coins that were listed on Binance or Coinbase, of course that price drops if the coin is listed only on IDEX, that doesn´t select the best cryptocurrencies. 

[SinisterS]

I've only really followed one ICO and the same happen. My assumption is that the people who got a first day bonus of sort were able to make a profit.

The cycle will always repeat to the next ico because majority of early buyers, investors, speculators are expecting to get early profit and they can go out as fast as possible with the help from the liquidity that will get by the coin when it can give them more than 3x from the ico prices.
Investors are looking for something that can give them easy profit.

The bad part is that it's probably just a few on the investors. Like 5% who do that and affect the price.

[EmmaBen]

This is always the case as a result of people trying to sell off for the least of profits they can get in order to exit the project. It could also be the case when people lose believe and confidence in the project and resolve to sell off their holdings in order to get out as fast as possible. Also, the ridiculous bid prices of buyers on the exchange could also force sellers to settle for prices much cheaper in value than they should be causing a major dump on the exchanges.

[fulled]

Many people still not so comfortable with new coins/tokens, they dont wanna take the risk to holding new token or coin because coin and token price so volatile at first time listed, so they just sold if the price go up, even for only 10% gain from its initial price. The second reason is people who get it without buy, from bounty/airdrop just wanna get money from project they working with as soon as it can be sold

[seleme]

Many bounty hunters immediately want to sell their tokens and thus kill the price, but also many times people have already argued that the investors themselves who buy tokens through ICO or IEO also kill the price of tokens because before that they bought tokens with huge bonuses, but many project developers are also engaged in the sale of tokens from the very beginning.

Bounty hunters are looking for the easy and quick ways of making money, it is natural to expect a huge dump for specific token to get dumped after getting listed on the exchange. IEO-s can be exception because the deep liquidity is enough to keep price without getting dumped to the low levels.

[adzino]

I guess you are talking about the tokens from ICO projects. When promoting a project, they spread out the tokens in different ways.There are bounty programs, air drops and different campaigns were user are rewarded with those coins/tokens for a month long participation. Once the coin is listed on an exchange, those people who received those tokens/coins as a rewards tend to sell their tokens for other coins. Thus, the price starts to drop sharply as soon as they are introduced to an exchange market.

[danherbias07]

Now you have an idea.
You should not believe the price that they will post or never compare it with how much you bought it per token.
The market will be the one telling that and no one knows how much it is going to be.

Been in the industry for quite so long and joined mostly the ICO's. There are those who are successful and go way beyond the ICO price. Out of 100 there will be 2-5 of them.

[amaterazu]

This as been a question running through my mind always. All ICOs have their ICO price and sales price.  The ICO price is usually lesser than the market price (that is why people invest to make profit when its listed).
But this days when coin is listed the price drop drastically much more than ICO price which left the investors of no profit.
What could cause this drop when listed?
Let's hear our own though please.

This price drop I think is very common. And it is caused by many people who sell coins. And the buyer's interest is so small that the price cannot afford back up. We must be cautious in investing but current market conditions are good. So that the coin has decreased slowly the price is back to rise.

[tippytoes]

This as been a question running through my mind always. All ICOs have their ICO price and sales price.  The ICO price is usually lesser than the market price (that is why people invest to make profit when its listed).
But this days when coin is listed the price drop drastically much more than ICO price which left the investors of no profit.
What could cause this drop when listed?
Let's hear our own though please.

This price drop I think is very common. And it is caused by many people who sell coins. And the buyer's interest is so small that the price cannot afford back up. We must be cautious in investing but current market conditions are good. So that the coin has decreased slowly the price is back to rise.

This is the major struggle of most projects still holding their ICO or token sale. Most investors are now getting the trick of buying high potential coins when they hit in the exchanges rather than during the ICO period. The decline of price owed to many factors not just only those bounty hunters, but the private investors themselves or the team holding most of the coins. But if the platform is very solid with working app and users, they still have the chance to grow and increase its value after such dip in price.

[Akoldi_ibk]

It is very simple, everybody wants to cash out as soon as possible and make some profit, project team inclusive. Bounty hunters, airdrops, investors and every other players are always in the race to turn their rewards into something more tangible. There is no other way around it. It is very rare these days to see ICO project performing above its ico price.

[irixo10]

This is bound to happen because most people might wish to dump once listed at the same time, the team have a role to play. That is, if they have tangible platform plans and updates the price will dump on listing but will pick up gradually.
The cases where a coin dumps in price and continues in that manner only shows the Incompetence of the team, either they have abandon the project or have entirely nothing to offer.

[Irvinn]

If the project is really promising and the society is interested, then there is no point in worrying about coin prices, because sooner or later the prices will still go back up, even after a sharp collapse.  And most importantly, the team correctly performed its work and professionally worked on its project.