Bonuses are only to deceive people

[cizatext]

I partially agree with you on this, I recently invested in an IEO and the team decided to conduct a buy back and the set the price a little bit high then what the price is on the stock exchange but with a high bonus up to 100% which means they are buying back at half of the price the set.

[Lolox]

The bonuses are very reasonable I suppose. Each IEO project will definitely do a different promotion. In order for the coins to be sold 100%, at the end of the IEO they give a big discount. Indeed, if we think this will definitely have a negative impact, the price of the coin will definitely decline, when the investor sells the coin.

But it also depends on the potential of the project. If the project has a developer and a smart team in developing the project. I guess the coin price can return.

[airdropdude]

Honestly, when I see bonuses for IEO, I don't count them as bonus. Rather I count them as the ones I paid for during the IEO but I have to pretend like I get them for paying for little. Most time, bonuses don't make me feel like I'm getting some for free because I bought some.. Let me just say, Generally, bonuses are not real bonuses. They are just what you paid for.

[pinoy.bolanon]

Bonuses are made to attract more investors, thats what they think, but it has a negative effects to the price of the coin when its listed to the exchange, it could hamper a dump of price, due to large number of supply in circulation, but also it maybe a tactics for some developers to gather money and in order to scam investors, we never know, but we experienced it already.

[max6575]

with use of returns on calcultion as managing tasks with decision on buying of token from the ico scheme of works from developer, the extensive on works as exist might be as use with dependence on customs as investors to prepare of release on covering fees to wait as investment grows as the rise on difference with the price as drawing with the chart on market.

[dirgayeah]

I think, there's no mistake for that bro. That just a marketing strategy like another conventional business. Normal people will more attracted when they got much bonus right? So it's same with IEO as well. as long as they prove their value, even with no bonus, ton of their token will be sold out.

[wedosgibas]

Boom, it looks same, there are no price changes there, this is really a bad marketing strategy, this isn't even a strategy, it's more bullshit

[ipanks]

Most times, excessive bonus kill the project, except the project has a very robust community and has good liquidity and therebye supporting the project for an organic growth. Although the major intent of any bonus is to get the attention of buyers who may think it's a good offer but actually a deadly one in the long run.

I think that a big bonus will not affect the project so much if the team will freeze the coins of those investors who received a bonus for a year or more.

If the developer and the team do that, I think that will makes the investor and the participants angry or sad because they cannot get the token as their rewards. Maybe by freezing, the token can prevent from the dump of the token price so the token can enter the market without having a trouble. But the bonuses will make people oversold the token because they think that is the free money for them so they can sell it with fast or still hold for more.

[kenelmark]

Boom, it looks same, there are no price changes there, this is really a bad marketing strategy, this isn't even a strategy, it's more bullshit

That's right, Bonuses are only a lure for buyers at the beginning of the project, and clearly that is not a strategy, because the name of the strategy must be able to benefit both parties, not just one party.

[kindbtc]

Principally all these icos or ieos should not have rounds as this is deliberate method to fool investors i believe there should be only one crowdsale and if the project is worth it no matter what it will still be able to raise decent funds so no need of multiple rounds.

[pieppiep]

Boom, it looks same, there are no price changes there, this is really a bad marketing strategy, this isn't even a strategy, it's more bullshit

That's right, Bonuses are only a lure for buyers at the beginning of the project, and clearly that is not a strategy, because the name of the strategy must be able to benefit both parties, not just one party.

Yeah, but that is not guaranteed to see the project can be a success after the ICO finish. Sometimes, the teams need to get more investor to come so they can have more money to fund the project. They don't mind to give more bonus to the investor because they can continue the project with more money.

But yeah, if the price after the ICO finish, the price cannot increase high, then the bonus will not worth anymore because the investor will not make more money from the bonuses. So they need to be patient to wait for the price itself and sometimes, that will need longer than they can be expected.

Right now, the ICO itself using many ways to attract the investor to come, but not all of the investor wants to invest in their project. The ICO project now does not work well anymore.

[audaciousbeing]

I just checked an ANN thread. There was a post regarding the last round of the IEO. They were offering 25% discount to IEO participants. I wanted to post on that thread. But instead of posting on that thread, I decided to create a new topic as there are many same IEOs.
Offering bonus on the last round of an ICO/IEO is really funny.
The bonus is valuable only if there are some other participants that sell the tokens at higher prices. I cannot understand bonus on the last round of an IEO. Even if they give 1000% bonus to investors, it doesn't differ. The bonus on the last round must be zero. These kind of IEOs try to deceive participants. It might be true even if we call them scammers.
If a token price is 100 satoshis and they give all participants 25% discount. Investors shouldn't be happy that they have bought the tokens at 75 satoshis. Because the price is 75 satoshis not 100 satoshis.
We can say the price is 100 satoshis if there will be a next round and some people buy the tokens at 100 satoshis.

I try to understand the scenario you are painting but it kind of seems confusing and not clear enough to make a conclusion. All over the business world, companies give bonuses as a form of motivation for their clients to make more patronage but it does not necessarily means a form of deceit because its a win-win for the two parties involved based on their own analysis. It now depends on the buyer to do his own calculation to understand the marginal returns he would get should he embark on such endeavor.

You as an investor who have the opportunity to understand the dynamics and how the figures does not add up would be in a better position to make the investment decision compared to just an individual with basic mathematics would see it as something to take advantage of which is why the Black Friday sales is always massive day year in year out.

[stigmacryptonight]

I think, there's no mistake for that bro. That just a marketing strategy like another conventional business. Normal people will more attracted when they got much bonus right? So it's same with IEO as well. as long as they prove their value, even with no bonus, ton of their token will be sold out.

Well, that is the marketing strategy of every project to give a bonus. It's just that the project does not think about future impacts, if it gives a large bonus. But also this is not wrong, again this is really a project strategy to attract investors to be interested in their sales.

That is very true. I also think the impact on the project if it gives a bonus to investors with a high percent (%). It really affects the price at the time of distribution. Unless the project withholds the bonus given until the specified time.

[lixer]

Big bonuses are the reason why most project dump and fail, and then they blame it on hunters, now that we have IEo that does not involve hunters, we can still see that the same thing is what is happening here, nothing has still changed as hunters are still dumping their coins too, and I guess the parties involved never care anyway, because like you said, it is just a scam, they only use that bonus to attract them and that is all, people that will suffer it more in the future are future investors, they are the ones that will be using their money to keep paying these investors and even these developers profit.

Luckily for me, aside the money that is involved in all these initial offering, I have never picked much interest again in joining it, I will rather wait till the project is fully operational.

[Viceroy]

I’m not sure it’s a bad thing, sounds more like a way to promote itself. But was crypto ever a home to nobility? Doubt it.

[cudora]

I feel that it is a great marketing opportunity to attract people to invest on the early stages, the only mistake that a lot of teams are doing is the ridiculous discount or bonus, so people would get twice as much tokens or get a 50 percent discount.

[poornamelessme]

So long as the earlier bonuses was higher or equal to 25%, it's fine. But if they had no bonus, then changed the terms at the last moment so the last round provided a 25% bonus, then it's shady. Actually any changes at all to the terms after an IEO has started (unless its minor things) is kind of shady.

But bonuses in themselves isn't shady ... they are pretty common. But if I saw an IEO adding a big bonus at the last moment, I'd stay away -- all it tells me is that nobody is buying their coins and the devs are getting desperate.

[forexandcryptoauditor]

Discount is something which a retailer can give on the product which he brought at a certain price. Here with projects, they themselves setting up a price and gives 25-50% bonus based on the levels. This is totally wrong and false information from projects.
I think its just a marketing strategy to sell the tokens, as investors get attracted or inclined to buy the tokens.

[atjiat]

During the very strong activity of the ico company market two years ago, each project provided an average of 50% discount on the purchase of a coin to all investors.  Each investor sought to be among the borderline number of people who could buy coins during token sale.  If in previous years the discount on tokens gave good guarantees and opportunities for profit, today the 50 percent discount is more reassuring for investors, because in case of failure, he will not lose a lot of money, because he did not pay the full price for token.

[serjent05]

I feel that it is a great marketing opportunity to attract people to invest on the early stages, the only mistake that a lot of teams are doing is the ridiculous discount or bonus, so people would get twice as much tokens or get a 50 percent discount.

The thing is the one OP told us is that an IEO is offering a discount on the last part of the sales.  It is kinda unfair for those who get in early, since it should be the early one who get a huge discount since they parted with their money earlier than the last buyer of the IEO.  

Probably that IEO does not met the needed funds on the prior batches then decided  to give a 25% discount on the last batch.  That sounds plausable on the developers side but it is very disappointing on the investors.  They could have adjusted the scheme giving more discounts on those who bought earlier adjusting the token sales count, and give the planned discounts on the target batch.  This will give both the early investors and the upcoming one a good deal.