I failed to notice this all along

[Outhue]

I thought I was an expert when it comes to picking good altcoins but I know nothing, all this while I never knew how important is vesting period when investing in crypto projects, no wonder some altcoins never go back to their ATH again.

I messed up pretty bad, I build a crypto portfolio with over 3 projects with bad tokenomics, if you don't know, vesting in another word means token lock-up, the team will lock part of the token supply for a period of time, and later they release them.

Fact is the release of those tokens will make the value of the token go down, have you ever look at a project with 20 billion supply that still has 0.86$ value per token in a bear market? That's the case. High max supply with high value. Very common with projects on token vesting.

If you buy such tokens you will lose money when the token unlock take place, watch out when making some choice with altcoins, also here is one of the few websites that keep track on projects token unlock

https://token.unlocks.app

Use it to your advantage

[cryptoaddictchie]

I messed up pretty bad, I build a crypto portfolio with over 3 projects with bad tokenomics, if you don't know, vesting in another word means token lock-up, the team will lock part of the token supply for a period of time, and later they release them.

Actually vesting on a new project is really risky. I have the same case too. But of course I understand the risk then I go for it and let it be. Investing is also has a chance to lose money and not only to earn from it. But surely there will be time that you get the advantage of it. Its just the market now is down and we cant rely on these projects now cause even its good it still gonna give us false hope.

[retreat]

Investing in altcoins has been very difficult these days and the potential for those tokens to become shit tokens is huge. Even projects that we consider to be potential, such as blockchain, Defi, Metaverse, and NFTs, most of them have been scammed and become shit tokens.

What we are waiting for now is when the market has recovered and the prices of the tokens that we have been holding will increase again, even though the chance is quite small, we must be optimistic.

Btw, thanks for the information you have provided, the website is very helpful for people to be able to track token locks on many projects at once. This is very useful.

[boyptc]

I thought I was an expert when it comes to picking good altcoins but I know nothing, all this while I never knew how important is vesting period when investing in crypto projects, no wonder some altcoins never go back to their ATH again.

I messed up pretty bad, I build a crypto portfolio with over 3 projects with bad tokenomics, if you don't know, vesting in another word means token lock-up, the team will lock part of the token supply for a period of time, and later they release them.

Fact is the release of those tokens will make the value of the token go down, have you ever look at a project with 20 billion supply that still has 0.86$ value per token in a bear market? That's the case. High max supply with high value. Very common with projects on token vesting.

If you buy such tokens you will lose money when the token unlock take place, watch out when making some choice with altcoins, also here is one of the few websites that keep track on projects token unlock

https://token.unlocks.app

Use it to your advantage

Honestly, it's hard to invest in altcoins if you're just try to hunt for some good profits that you think they're good as they present to you. If there are people that are making a lot of money in altcoins.

It's either, they are the developers, early investors that has got too early when it's listed and then those that are patient that has became lucky buying a good project and has got good developers working on it.

[dbc23]

No one claims to be an expert at altcoin investment those who walked away with good profit were only lucky with no technical proficiency attached. Before vesting on a token, it is safer to know the marketing strength of the project because sometimes after ICO or IDO the project keep depreciating because there are no demand to push price up and so when those coins get unlocked the value keep reducing and some either remains static or crashes out completely.

Investing in crypto requires collaborative research. I have this feeling from my few experience with Altcoin that no one person can make a 100% accurate research and findings on how best to tackle the numerous coins listed on various trading platforms. Some are bunch of traps others are for early birds. It is safer in a duo.

[PrivacyG]

Vesting is a false dream.  You get a Coin currently worth $1 and invest $200 in it over a 10 years lock and they promise you will receive 200,000 Coins after the timer ends.  You will.  But by then, the price of a Coin will not be $1 any more.  Best case, the price decreases to $0.001 and you get your investment back.  But even that is very unlikely.

Nobody will make you Rich out of nothing.  Vesting is only used to bring false hope and as a bait.

-
Regards,
PrivacyG

[kamvreto]

Adverse effects and negative impacts will definitely exist on the vesting system. I bought a token on an ICO and got vested for a few months. Profit, when the vesting took place the market, continued to improve, and until the vesting ended the price exceeded the ICO price. I may be lucky enough, but in some cases, a project with long vesting will only torture investors and throw away their money because there is no profit to be made. a vesting system that is too old with a small allocation cannot be applied anymore. But if people don't vest, they throw away their coins and forget about it, leaving the project abandoned and undeveloped.

[Fullcoinese]

if you invest in a new project like that, it usually only occurs during the pre-sale stage or private sales that require most of the capital. the price is indeed cheaper but the minimum investment value is usually higher. it will be different on public sale.

for a new project that does vesting in investor distribution, to be honest, it makes the loss lie with the investor. especially if the open market has been done after the first vesting. more holders will sell to recover their initial capital. if you have returned the investment in the first vesting, you can say profit. but if the first vesting capital is not reached, to be honest, it will be difficult to get a good return. because the price is going to fall very deep.

[Beparanf]

-snpp

It depends on how long is the vesting period is. Some project has a vesting period of 2 year and above while shit start up project complete the vesting for just a year including the devs funds. Vesting period is really important in determining the future price especially on weak fundamentals project. So don’t expect a new project that will reach again the ATH during its initial release since the circulating supply is inflating overtime.

But sometimes the team counter this through the burn mechanism that’s why it’s important to understand first the tokenomics before investing on altcoins. It’s better to invest on altcoins with fully circulated token supply that startup project that already in the mid terms of there token release.

[tranthidung]

With altcoins and different rounds of sales: seed, private serie A, serie B, public sale, whenever each round of token unlock comes, price will be dumped. It is easily to discover with GameFi, NFT tokens in 2020 and 2021.

Even in bull market, token will still be dumped and in bear market, things should be worse. Especially if it is about GameFi, Whatever-to-Earn tokens, their non-gamers will play such game-to-earn and dump their earned tokens on the market without hesitation.

Thank you Onthue for sharing the site which I did not know about. Are their stats correct? Can anyone confirm it?

By the way, we have another website with similar features for double checking.

• Vestlab.io

[PrivacyG]

With altcoins and different rounds of sales: seed, private serie A, serie B, public sale, whenever each round of token unlock comes, price will be dumped.

Well I mean it is all logic.  It is the more modern way of inflating an asset.  But still, inflation it is.  We already know Fiat has annual inflation.  Yet we do not depreciate the value of the Dollar just because we know the approximate purchasing power it loses in a decade.  Same here.  It is known there will be a dump of Coins in the sea of many Coins that already exist, so what are people hoping for?

-
Regards,
PrivacyG

[Jaered]

Yeah, it is quite risky. I vested on a token, Ferro protocol. There was an initial vest, with a small portion released at launch. The token pumped, but later faced a gradual dump and it was unlocked. It was gradual though because 10% were released every month

[Yatsan]

Yeah, it is quite risky. I vested on a token, Ferro protocol. There was an initial vest, with a small portion released at launch. The token pumped, but later faced a gradual dump and it was unlocked. It was gradual though because 10% were released every month

Same scenario with what I usually saw with projects which has a 'lock in' features. It is quite a form of staking for me but different because you won't be able to pull your tokens out in an instant. As others have mentioned, it is too risky. Reason is lack of consistency with the market value of a token. Also, it has the same logic with fiat. Try to just store an amount of money in bank for decades. Compare how much its value from before up to present wherein you'd be only able to buy a few for that amount in the present because of inflation. But inflation is not the reason with market price downfall of a locked token, but rather volatility. What ties both situation is lsck of consistency with market "value".

[poodle63]

The inflation will push the price to go down if there would not be enough liquidity in the market. The problem is the developers were taking the advantage by offering venture capital to buy at the private sale which has been sold by the developers with very cheap price.

The unlock of new supply will be distributed to the market as the unlocker will have ability to sell their tokens and this mostly happening with the project with so many venture capital.

The venture capital itself mostly owned the biggest portion compared with the retail investors. Locking features will not give guarantee if the price can still stand at the high price. The fact that if there will always be token unlock that will push the price to go down.

That's why liquidity is very important for that.

[BitDane]

It has been proven that project that lock their token and slowly released them open a window for new investors to hop in.  It is beneficial for incoming investors and the project developer but somehow devastating to investors.  The reason is already stated by @OP and to give another example is the UTK token when the price of the token crash when they the vested time for release matured.

I agree that whenever we see this kind of tokenomics, we shouldn't rush ourselves to buy the token instead we can wait for the release of the vested token because holders of those token are very eager to profit and sell their newly released token.

[FinneysTrueVision]

In a bull market everyone thinks they are an expert at picking good projects but in reality we are all just making an educated guess and hoping it works out well. I've invested in several coins that went up a lot in value but over time they ended up being worth much less than what I initially invested. Unless a coin is fairly distributed like Bitcoin then it doesn't matter what the tokenomics are. There will always be insiders who have given themselves a large portion of the supply and they will not do what is in the best interest of the community because they are only there to make a quick profit.

[carlfebz2]

Whether having small or huge supply it wont matter, also whether those token locked up in short or long time wont matter.It all matters about the demand.Owners or developers wouldnt really be that dumb on making

a rug pull if they do saw that their coins is really getting sufficient attention or demand due to its utility.Unlike into those tokens who are just been pumped out just because of some hype or manipulation
then this is where things becomes too obvious.

Lots of project had been flooded out on this market on which it is really just that not simple on choosing which one would succeed out yet there
are shittiest project turns out to be valuable  compared into those projects who does have actual utility.

[MAAManda]

The Vesting phase is a very important thing to pay attention to before buying start-up altcoins, but in my opinion, you have a wrong point @OP, like:
Q1. Fact is the release of those tokens will make the value of the token go down "
A1. Token release is not strictly meant to be a dump although in most cases there will be a dump after token release. I have experience with an altcoin called Oasis Network (ROSE), at that time I had a few bags of $ROSE, then I heard that they would release a token in the next 1 month, I immediately sold my token to avoid the dump price impact of the release. But what happened after? I was disappointed because it wasn't a dump that happened to the token but a fairly large pump. It turned out that they had a different agenda regarding the token release, they released tokens for the development of their ecosystem such as creating a Hackathon, of course this was what made the price of $ROSE at that time a pump.

Source: https://token.unlocks.app/axelar

I mean, apart from when the token release will be, you also have to know for which allocation the token release will go, if it will go to the good side like for project development, instead of selling to avoid dump you should hold your tokens.

[Jawhead999]

The reason why the shitcoins price is decrease when the developer release the token is the holders directly dump their coins at the same time, since many people want to sell the coins, but there's no enough demand to buy it, the price will go lower and lower since it's worthless. It's similar like bounty campaign reward, during the bounty started the price is quite high and similar like their promise. But after the distribution done, the price will go lower 50% from the initial price.

[SirLancelot]

The reason why the shitcoins price is decrease when the developer release the token is the holders directly dump their coins at the same time, since many people want to sell the coins, but there's no enough demand to buy it, the price will go lower and lower since it's worthless. It's similar like bounty campaign reward, during the bounty started the price is quite high and similar like their promise. But after the distribution done, the price will go lower 50% from the initial price.

What do we expect with a shitcoin? They don't have any technology so they are not worthy to hodl and if you insist to then you will only suffer more losses because the majority is already dumping their tokens. Not all tokens that are being paid in a bounty are shitcoins but there are also a few who are in better quality.

I think was only a coincidence that the value of the coins have dumped by the time they distribute the rewards but maybe there are times that it was intentional. It could be the team or the investors are dumping their coins before the distribution phase happens, so that they can still earn good before the hunters dump their coins and then the price dips. If you want to, you can hodl your token and maybe it will recover and rise more in the future.