Why New Crypto Projects are Dump ?

[escalante28]

Well, not all new crypto projects are dump, it depends on the projects and on the market sometimes how will it goes. Sometimes on the listing, it will dump as the participants of the airdrop will be going to dump their tokens right away. And it's very normal that on the first listing the pump and dump will happen.

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[freedomgo]

They dump because they are build by random people, people who don't know how blockchain works nor have any experience about blockchain, they copy others works, whitepaper, roadmaps and use cases just to get funds out of people, now we have lesser blockchain experts in this space, many are scammers

True, the dumping of a token price that has been generated by a project is because the foundation they built was not based on their own ideas, but they were copied from other people in order to attract the attention of all investors and traders in the market.

As an investor you should know that, before you invest, you should be reading the project's whitepaper and know the team as well, because a reputable team would always created a good project, of course start with the team because fake project will likely use fake teams so they can hide from lawsuit.

With the high rate of scam in the market, stupidity is not an excuse.

[nurilham]

Well, not all new crypto projects are dump, it depends on the projects and on the market sometimes how will it goes. Sometimes on the listing, it will dump as the participants of the airdrop will be going to dump their tokens right away. And it's very normal that on the first listing the pump and dump will happen.

Airdrop participants do not get a large number of tokens for each individual, so the effect will not be large even if they throw away tokens simultaneously, because tokens born from mature projects will always bounce back after the disposal occurs.

It happens because there is an allocation to buy back, but sometimes a project not apply allocation for buyback so that market chaos occurs after the bounty or airdrop prize is distributed

[Bitstar_coin]

hello dear friend hope you all are fine .
today i just talking with myself about new project of crypto , at launching their projects they promise big and big
but after months or even some projects in a days go down and did not comes up ...
why this happens ?
share your thoughts .

i think mostly because of the influence of the whales (the angel investors) they are mostly in control of the market, they will pump the price to a point where they are comfortable to sell and dump all their bags on others, this whales are usually given huge bonus for their support in the early part of the project, so by the time they dump both the bonus and the actual amount in the market the price will deep and not able to recover quickly.

[wack slacker]

I have seen how failed and appreciated ICO projects in 2017. This year is a new project in 2020 with many changes in product development and fundraising. Some projects have developed their own code, some are already complete products and have great partnerships.
The common feature of new and old projects is that they are both privately funded at a very good price compared to ICOs, so you won't be afraid to sell purchased tokens at a good price. They invest to make a profit and me too, I will definitely dump the price to make a profit because maybe in the future the value of that project may decrease.

[Viscore]

One thing that brought those new crypto projects drastically dumping after the listing is that because everyone is selling it at a cheap price. Investors and bounty hunters are in the hurry to throw their rewards as they want the money than these tokens.

Yes, we can say that some of them are worthy of investment but badly how it ruins after the listing. This not only about the potential of the said project but this is also how the developers working on it to get appreciated by the community and how they build such strategy in order to stabilize the market movement. This is somewhat they missed almost all project developers.

[kenelmark]

It happens because there is an allocation to buy back, but sometimes a project not apply allocation for buyback so that market chaos occurs after the bounty or airdrop prize is distributed

Yes, but we can also see from several cases of successful projects and not implementing buy backs, but their token prices did not experience a severe fall and demand continued to increase over time, so all of this really depends on how the team manages and makes things. positive for the project so that their token will be liked by everyone in the market.

[passionplus]

Currently, the new coin that IEOs in the price are no longer after coming to Price Market. Yet again many project fleeing ieo. It does not want to invest in many investments and new projects. This makes new coins more dump.

[ghost424]

Many new cryptocurrency projects copy already created technologies and therefore such projects have no future at all and it is not worth investing in such projects, also the creators of new projects simply abandon their projects for various reasons, and of course, most projects list their cryptocurrencies at scam exchanges where the price of any token will drop to zero.

I think to have an easy job in determining if a project is legit or not, we should only look at where it's listed, once it's listed in a non reputable exchanges, then you should doubt their future, but when listed in a popular and reputable exchange, you should believe that they have a chance to grow in the market as exchanges themselves are not stupid to list a scam projects.

Another aspect to consider is the legitimacy of the idea. Most ideas are just recycled and called with a new name but we cannot blame the Cryptocurrency Industry since most bounties before were just made to create profit and that is a cycle within this Industry. Only few platforms are considering to further develop their system because sometimes they are losing supporters midway and that is bad since they want their platforms to be used on the daily.

[Uhde]

hello dear friend hope you all are fine .
today i just talking with myself about new project of crypto , at launching their projects they promise big and big
but after months or even some projects in a days go down and did not comes up ...
why this happens ?
share your thoughts .

because of the purpose of these projects. i mean the main purpose for these projects is not to provide a solution for the ecosystem. the only purpose is making profit for the team. that is why projects become dead as soon as the team gets what they want.

[XCANA]

They dump because they are build by random people, people who don't know how blockchain works nor have any experience about blockchain, they copy others works, whitepaper, roadmaps and use cases just to get funds out of people, now we have lesser blockchain experts in this space, many are scammers

I think you're on point but in most cases cryptocurrency projects get dumped becasue of their lack of trust from investors. Most investors have been hurt severely because of these projects which most are just meant for finance gains and not to the investors. We have seen #DEFI projects been launched recently with good prospect and roadmaps but targeted to extort investors. YFI wasn't meant for investors IMO becasue the rate at which the tokens moved and dropped was a concern to me, that, a project with investor at heart won't scammed like such.

[albon]

hello dear friend hope you all are fine .
today i just talking with myself about new project of crypto , at launching their projects they promise big and big
but after months or even some projects in a days go down and did not comes up ...
why this happens ?
share your thoughts .

Yes, and it is not strange that they make big false promises and do not implement any of them, and there are many reasons that make the project fall, including that they do not have enough experience to manage the project, or that the idea of ​​the project is not innovative, imitation and incompatible with blockchain technology, or they do not have financial liquidity for development Or to list the project on the exchange platforms and do not have investors who trust the project and finance it.

[mezzaluna]

hello dear friend hope you all are fine .
today i just talking with myself about new project of crypto , at launching their projects they promise big and big
but after months or even some projects in a days go down and did not comes up ...
why this happens ?
share your thoughts .

because of the purpose of these projects. i mean the main purpose for these projects is not to provide a solution for the ecosystem. the only purpose is making profit for the team. that is why projects become dead as soon as the team gets what they want.

But that would defeat the purpose of other Platforms and other projects. Yes its possible that they only want that profit but not all projects are the same. We can still see some projects pushing through developments even though their value is low. Some old platforms are still usable and this new projects are getting dumped because they are just recycled versions with no originality. The only way to discover this is by taking the risk of learning about it and see if the developers are committed enough to develop it.

[b1k4ng]

They promise it all just to attract investors, in fact all the promises are lies and maybe only 5% of the projects actually keep their promises. For that at this time it is very difficult to determine which projects really want to develop

[Sebas.tian]

I think the project doesn't exactly calculate allocations for marketing, or etc. So it goes over budget a location and creates a big dump while it's on the market. and the project wants to get money quickly, after being in the market all the tokens on the team are all sell.

You just nailed the problem that causes the dump whenever bounty hunters get paid their rewards. For this to be good on the part of the project they have to make sure token allocations for bounty hunters is well calculated in which it distribution won't affect the market price. Currently, most bounty campaigns on this forum are now allocating some small amount to bounty hunters becasue of the fear of them getting their rewards dump into the market which will definitely affect the market price negatively.

[coinporch]

hello dear friend hope you all are fine .
today i just talking with myself about new project of crypto , at launching their projects they promise big and big
but after months or even some projects in a days go down and did not comes up ...
why this happens ?
share your thoughts .

price created by the power of buyers and sellers, when sellers win the price will down
and if the price didn't got interest from the traders or investors, the price will always down my friend
thats why the team should give a good updates about their project to increase the demands, if the demands increasing for sure the price growing too

[justdimin]

I personally do not really know if people could make crypto projects go up or down, I don't know if team will be great or not, I actually do not even know if the launch will be good or a dump neither. What I know is the fact that there are tons of new projects and that type of competition makes it harder and harder for other people to focus on getting better.

I mean if I start a project today, I can use the most advanced technologies in the entire world, I could work with blockchain developers that are best in their business and I could definitely hire the best marketing people and best designers, yet I will have to keep working hard constantly and non-stop because even if you get famous for a minute, in crypto world people forget about you very quickly. Which is why it is quite difficult to be successful.

[ije07]

If I can be honest this is the market scenario they had planned before the project was launched in the market. Yes, most of the bad teams have planned all this from the start, bad projects will not last long in the market. the success of a project depends on the performance of the project team and developer, if the & dev team is serious in developing the project, the product is going well in the market then this is a good project criterion for the future.

[Princeofpoetry]

In my opinion, because of the new project there is no attraction and innovation by the development team, so many people sell tokens only for profit but not for the sustainability of the project. maybe the usefulness of the coin will not be affected when it is dumped.

[CODE200]

Not that sure but most of the time, projects that are being left behind are those who failed to enlist their tokens in exchanges. This has also something to do with longer perspective of the project's further development. What happens more often is that, projects are just aiming to get profit from their presale but are not interested to make futher changes for the betterment of project in a long run. Not quite sure of what is the certain reason but still, there are projects which are existing for years already.