Bonuses are only to deceive people

[nutriagrigia]

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 problem is that new projects should not attract investors with discounts and bonuses, but with a really good product that works or  by a very strong idea

[TheICE007]

Well most times this bonuses aren't to deceive people or investors but rather to attract more people to buy or participate in the sales but when the bonuses becomes too much the negative effect becomes higher than the positive. Also in cases like this, you find token dumping once listed, the dump would be coming from the excess bonus.

[zuziekatee]

bonuses should decrease as token sales tends towards ending. however, sometimes the team can decide to make change strategy just to make sure they sell out their tokens. bonuses wont determine the project performance and success.

[Herbet Fry]

It isn't even exclusive to crypto. Just in general bonuses sort of deceive people. Companies make more money than they normally would selling more of something at less per item. So in total, they are spending more. The clever thing is, although they are spending more they are feeling better because they think they have got a good idea.

I even find myself buying more groceries then need because you get "6 for the price of 5" deals and things like that. So I too fall victim. But I am a knowing victim ^^

[minersday]

Bonuses are only to deceive people

Definitely, bonuses are meant to deceive investors and people from either reading or researching about the purpose and aim of the project. Looking at the crypto ecosystem, people are more concerned about the profits they will make from their investment rather than understanding the true intentions of any crypto project launched.  The idea of the project should always be the main focus of any investor.

[Danslip]

Bonuses are only to deceive people

Definitely, bonuses are meant to deceive investors and people from either reading or researching about the purpose and aim of the project. Looking at the crypto ecosystem, people are more concerned about the profits they will make from their investment rather than understanding the true intentions of any crypto project launched.  The idea of the project should always be the main focus of any investor.

The current bonus rates are not that kind of dangerous for the team and investors, investors also invest in the project because they see a future perspective. Otherwise, choosing the project with the expected bonus amount per invested amount will deceive the people. The bounty hunters also have a contribution on the dump caused by both parties. I thought bonuses for ICO's only occur after the end of the token sale but it is fresh information for me to see the opinions by other investors which take the last stage bonus. After receiving the bonus tokens, investors shouldn't rush for selling these gift tokens. It is not true that all investors do the similar market trading, some investors also add the bonus tokens to their portfolio for protecting their initial investment amount.

[Naughty Princess]

to be honest that is true, the bonus is just a bait to attract the attention of investors to join in it. well maybe not all of them but in fact a big bonus would result in large losses. I no longer see real benefits when investing in ICO, I think investing in IEO is more profitable now.

Giving bonuses is part of the marketing strategies to attract investors but not an indicator that it will be a successful project unless it do better on the circulation along the market. Do not bother with the bonuses and focus on the purpose and the roadmap of the project. That will affect the supply on the market.

[Layers318]

Bonuses are not intended to deceive investors. Giving out bonuses is a strategy adopted by every business not only cryptocurrency projects to boost sales. This is the main reason behind the bonuses projects offer during their token sales. And as the sales get to its close, the bonuses are lifted gradually hence it becomes an early bird catch tactics.

[libert19]

Indeed they are, and it's big red flag when you see absurd bonus amounts and on absurd times (like at the end of IEO).

Whenever you see such IEO, ignore it unless you like to throw your money in drain (you should send me, if that's the case).

[Periodik]

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.

Exactly! The early bird should catch the worm. In this setup, it seems the worm is reserved for the late bird. This is funny. Such arrangement is shady, if not an outright scam.

It could only mean that the IEO has failed to attract investors in its early stages. To make up for the low turnout in the early phases of the IEO, and to hopefully cover up the needed funds for the development which is still highly unmet, they are banking much on their final phase. The huge discount offered in the last batch is their final hope to meet their desired funds. In so doing, they are putting their early investors in a disadvantaged position.

[bryant.coleman]

I can understand if a certain ICO/IEO give discounts during the initial rounds. I have seen steep discounts of up to 50% during the initial rounds. I am still OK with giving discounts in the last round, if there is not enough interest in the market to reach the soft cap level. But then, the price in the final round should not be lower than that in the initial rounds. For example, if the team decides to decrease the price in the final round from 100 Sat to 75 Sat, then they should make sure that those who had purchased the tokens during previous rounds at higher prices should be reimbursed for their additional expenses. What I am saying is that they can't keep the price at 75 Sat for the final round and 85 Sat for the initial rounds.

[Mighty_crypt]

Only very few projects introduce bonuses for investment either through presale or IEO and still become succesful but now many new projects are just using bonuses to fool investors, i think project should only introduce better bonus offers if the project IEO Or presale is launch in altcoin bullrun time, this way bonuses wont hurt the project

[lighpulsar07]

Bonuses are not intended to deceive investors. Giving out bonuses is a strategy adopted by every business not only cryptocurrency projects to boost sales. This is the main reason behind the bonuses projects offer during their token sales. And as the sales get to its close, the bonuses are lifted gradually hence it becomes an early bird catch tactics.

Well they really deceive people why? because giving bonuses in order to attract new investors even the whole project is a shit or pump and dump scam. this would lead their investor's losses since IEOs are pretty much pump and dump after the token sale since the tokens are already listed in exchanges unlike in ICOs although this will a good strategy for the company if they have a managed to convince people that have a good project that promises a good outcome. I also think that bonuses will result only on more pump and dump as investors sold their tokens after the IEO and the exchange opens them.

[efxtrader]

Bonuses are not intended to deceive investors. Giving out bonuses is a strategy adopted by every business not only cryptocurrency projects to boost sales. This is the main reason behind the bonuses projects offer during their token sales. And as the sales get to its close, the bonuses are lifted gradually hence it becomes an early bird catch tactics.

Well they really deceive people why? because giving bonuses in order to attract new investors even the whole project is a shit or pump and dump scam. this would lead their investor's losses since IEOs are pretty much pump and dump after the token sale since the tokens are already listed in exchanges unlike in ICOs although this will a good strategy for the company if they have a managed to convince people that have a good project that promises a good outcome. I also think that bonuses will result only on more pump and dump as investors sold their tokens after the IEO and the exchange opens them.

I think the big bonus cannot be said as an indication of a pump and dump project. In IEO there are sometimes new projects that provide bonuses so that investors are interested in investing. Big bonuses are common in marketing new projects and I think the pump and dump project depends on the developer team, whether they will produce a product or not.

[freedomgo]

Only very few projects introduce bonuses for investment either through presale or IEO and still become succesful but now many new projects are just using bonuses to fool investors, i think project should only introduce better bonus offers if the project IEO Or presale is launch in altcoin bullrun time, this way bonuses wont hurt the project

Those projects who are confident that they will be able to sell their coin will not give much bonus to early investors as they know it will also cause a dump if the early investors will decide to sell out for profit.  Most of the projects that gives big bonuses are not successful, though it's good that they give bonuses but this is not anymore attractive to majority of investors since it has become a norm to see bonuses that they can also avail in our projects.

When selecting the best project to invest, we look more on the people who manage and develop the project, bonuses and the likes is just a small factor that could affect the project, it's the team's capability which is more important.

[Abusadeeq]

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.

the essence of the bonuses is to entice the interest of investors and definitely they will follow their path like zombies. at last, when the token is listed on an exchange they will then realised that they are cheated

[Jpti]

Bonus up to 100 percent is really really bad trend. It is the trend of providing bonus during IEO or ICO, which largely contribute to dumping price of coins on exchanges. Investors are in hurry to sell off their coins bought with high amount of bonus, thus dumping their price. So this trend should come to an end for the growth of crypto projects.

[Kasabus]

Most likely there is a reason why they devs or project owners give it not just to deceive people but it also a complement for gamblers. But we need to be careful for this cause not all of them who are offering bonuses will have a good intention. However, it is in our part to evaluate their project either a thing to believe or a way to fool people which it mostly happens at this time.

[Layers318]

Indeed they are, and it's big red flag when you see absurd bonus amounts and on absurd times (like at the end of IEO).

Whenever you see such IEO, ignore it unless you like to throw your money in drain (you should send me, if that's the case).

Bonuses are normally reduced as the token sales near its end. There is every reason to be alarmed when the opposite of the story is experienced, thus when the projects decides to give huge and weird bonuses at the end of the token sales. This could be that the token sales is not going well with the project and that have decided to increase the bonuses to lure investors.

[RealMalatesta]

Bonuses are not intended to deceive investors. Giving out bonuses is a strategy adopted by every business not only cryptocurrency projects to boost sales. This is the main reason behind the bonuses projects offer during their token sales. And as the sales get to its close, the bonuses are lifted gradually hence it becomes an early bird catch tactics.

In a case where the bonus becomes extremely too much, it shows to me that the project itself has no value and the project just placed that value on it to be able to easily extract money from investor, and the way they will easily get to investor is to give them high bonuses, yes I agree with you that discounts are a way to help the project easily get to investor on time, but using huge discount when they know that it can easily crashes the market when investors dump it on exchange is a huge scam to me.

Huge scam in the sense that they deliberately did that so that the crash of the project can be accused on dumping and then the developer can exit the market easily, which is why you see most projects crashing and you see the team not even worrying about it at all.