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.

[nimogsm]

I just ignore this kind of projects.I do not support the idea of gradual unlocking of tokens or temporary blocking.If I buy something, I want to have access to it,so the risks are reduced.And while the tokens are blocked,the price for them may fluctuate in different ranges.Why create problems for yourself?

[Wakate]

There is so many risks investing in a new crypto projects that do not have a strong team and tokenomics. We learn everyday so making a mistake should not be the end. There are many crypto project that has locked liquidity and this is one of the things that is keeping the project alive. Once the locked liquidity is released, the price and value will start depreciating continually and if investors start selling there holdings then there is chances that the price of the coin will desperately diminish to zero. This is one of the results of rug pull that many Crypto investors keep complaining about.

[lalabotax]

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.

And this is what also happened to me. I had more than 10 old coins and tokens that I thought it will rise up and pas the previous ATH in the bullish 2021. But, in fact, this was wrong. There will be new projects again that are better and better in the next bullish. SO, keeping the old altcoins will be not worthy it. I lost money because of this high expectation n my old altcoins. I don't think that it will have another chance to rise up again. So sad, but this happens to me and I cannot gnore it. Now, I am still keeping them on my wallet, hopefully to at elast get quite good price to bring back my money 

[wheelz1200]

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

Yeah locking up altcoins is crazy for sure.  Not knowing from day to day how the market will turn and nothing ypu can do about it is terrible.  I have never been involved in any coisn or tokens that made me lock them up for a specified period.  You need to be able to turn at any point.  I'd steer clear from new projects that ties your money up.  Usually ends badly

[Mahanton]

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.

And this is what also happened to me. I had more than 10 old coins and tokens that I thought it will rise up and pas the previous ATH in the bullish 2021. But, in fact, this was wrong. There will be new projects again that are better and better in the next bullish. SO, keeping the old altcoins will be not worthy it. I lost money because of this high expectation n my old altcoins. I don't think that it will have another chance to rise up again. So sad, but this happens to me and I cannot gnore it. Now, I am still keeping them on my wallet, hopefully to at elast get quite good price to bring back my money 

Lots are standing on the same feet of yours when we do speak about such condition which is something that very common scenario where lots had been bagholding lots or tons of shit coins into their bags
including me.Rather than on making myself get stressed on waiting up for some pumps then it would really be just stressful and could give out that kind of not good feeling.
Better to move on and dont mind off about those bag hold of shitcoins you do have because theres nothing you can do but to deal up with the reality
and just move on because it cant really be that something for you to avoid and its part of the risks.

[GreatArkansas]

(....)
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

Wow, this is my first time seeing a platform just like this. I was just amazed when I visited this website and saw some top altcoins that is mostly or common I can see on social media or some forum that is shilling by other people, some of them are on the top list of token unlock dashboard.
But for me, I don't think that it will always be a dump every time there's an unlock event. Sometimes there's just a coincidence to the market like what we experience recently, which always dumping on the whole cryptocurrency market.

[karmamiu]

Some of them would even say that the tokens are going to be burned slowly so the supply will be limited to a very specific amount and promised that the token prices would soar up. That's the most common reason i've heard about them. Some projects with a very good goal tends to die because of this kind of strategy that is why it's very important to be vigilant and be more wary rather than being a FOMO. This reasoning is more common amongst P2E  games.

[wxa7115]

I just ignore this kind of projects.I do not support the idea of gradual unlocking of tokens or temporary blocking.If I buy something, I want to have access to it,so the risks are reduced.And while the tokens are blocked,the price for them may fluctuate in different ranges.Why create problems for yourself?

I am going to be honest and say that I did not knew this even existed, this goes against one of the most basic premises of this market, to invest in an altcoin and yet not being able to access your coins until those coins are unlocked is a ridiculous notion to me.

Anyone that does something like this is giving an incredible amount of power to the developers as they could always refuse to ever release those coins if they want, so in my opinion regardless of how attractive a coin may seem, if they have this feature enabled that should be more than enough to ignore the coin and never invest in it.

[michellee]

That's why we have to be very careful when choosing a completely new project and always look for more information to find it. But it won't be easy because the new projects don't have a history of a project and the new projects may become scams right after they're launched.

I'm not really interested in those new projects and just pick those coins that are already doing well. This is a lesson for you: you must be careful if you want to invest in new projects.

[Strongkored]

Every wrong step in investing will provide valuable lessons for us so we realize that everything offered by a project only looks good in theory but in the market it is completely out of the control of the developer team, whatever is offered, don't ever be confident that it will provide a profit but what must be realized is the risk of loss that can be obtained because altcoins are full of surprises and are controlled by people who have a lot of money.

[len01]

-snip

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

actually I have known about this kind of problem since ICO trend in the past.
usually a new project will offer new tokens for sale and a portion of the allocation is locked for a few years and will be released soon when it reaches the specified time limit.
of course this will affect the price of the altcoin to decrease in price. when the lock is opened, it is certain that the large allocation that was previously locked will soon be sold as well and directly affect the supply in the market and cause the price to drop dramatically.

So until today after I learned about such an incident, I never invested in a new project that had multiple locked allocations

[swogerino]

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

I agree that is the case most of the time but what if an altcoin in this example I am taking FUN token which has partnered with Freebitco.in website where you can lock them from 15 days up to 1 year and get up to 25% APY interest on them.I was not amazed by such scenario but now I regret not locking my amount of FUN tokens for one year as that would have given me like a lot more tokens,maybe I would have also lost but at least you get a higher number of tokens by doing so and supported by a large website like Freebitco.in gives me assurance it won't fail that bad this token.

[DanWalker]

I just ignore this kind of projects.I do not support the idea of gradual unlocking of tokens or temporary blocking.If I buy something, I want to have access to it,so the risks are reduced.And while the tokens are blocked,the price for them may fluctuate in different ranges.Why create problems for yourself?

It looks like you have never participated in any private sale or coinlist sale rounds. If you participate in these sales, even though your tokens will be locked and unlocked according to the schedule, in return, you will be bought at a very low price, you will not be able to buy that price on exchanges. That's also how big investment funds like Binance or Coinbase are doing. All have advantages and disadvantages, depending on the choice of each person.

[nimogsm]

I just ignore this kind of projects.I do not support the idea of gradual unlocking of tokens or temporary blocking.If I buy something, I want to have access to it,so the risks are reduced.And while the tokens are blocked,the price for them may fluctuate in different ranges.Why create problems for yourself?

It looks like you have never participated in any private sale or coinlist sale rounds. If you participate in these sales, even though your tokens will be locked and unlocked according to the schedule, in return, you will be bought at a very low price, you will not be able to buy that price on exchanges. That's also how big investment funds like Binance or Coinbase are doing. All have advantages and disadvantages, depending on the choice of each person.

you are wrong, I took part in the early rounds of coin/token sales and understand how it works  .I am talking specifically about the gradual unblocking of tokens and that this is not a convenient distribution model,as well as blocking for a year or more.Another thing is when after sales the term is a month or two, then it is permissible.

[wxa7115]

I just ignore this kind of projects.I do not support the idea of gradual unlocking of tokens or temporary blocking.If I buy something, I want to have access to it,so the risks are reduced.And while the tokens are blocked,the price for them may fluctuate in different ranges.Why create problems for yourself?

It looks like you have never participated in any private sale or coinlist sale rounds. If you participate in these sales, even though your tokens will be locked and unlocked according to the schedule, in return, you will be bought at a very low price, you will not be able to buy that price on exchanges. That's also how big investment funds like Binance or Coinbase are doing. All have advantages and disadvantages, depending on the choice of each person.

Anyone that invest in project that locks the majority or all their coins for a long time is simply making a mistake, since anyone that has been a trader or an investor knows that your timing is everything.

And if you cannot sell your coins during the time there is a crash or there is a pump and you have to let the opportunity pass then why bother investing in that coin in the first place? After all you are being stolen of your ability to decide when to buy and when to sell, which is pretty much the only thing a trader controls besides the amount of money you decide to use for that particular trade.

[yazher]

I just ignore this kind of projects.I do not support the idea of gradual unlocking of tokens or temporary blocking.If I buy something, I want to have access to it,so the risks are reduced.And while the tokens are blocked,the price for them may fluctuate in different ranges.Why create problems for yourself?

This is the new trend right now and we can't help but to choose any of these projects if we wanted to invest to assure our profit but this is not as easy as we know, because we need to have all the necessary information on when will they unlocked their tokens and to be as quick as we can to sell it because that's just how bad to invest in the altcoins nowadays, especially for the new ones like these. Others doesn't count the risk of holding it even after its unlocking period because they have trusted for the developers but most of the investors who bought it, will sell their tokens as soon as they have the opportunity to do so.

[traderethereum]

We will be smart once we find a project we think the project can improve on and develop more in the future.
But sadly, we don't know at all because the new project only looks good at the initial launch to attract the interest of the investors and after the launch, there are so many delays that they do so the investors lose faith in the team of the project.
This has happened many times with many projects and only a few have proven that their projects can provide something for their investors.
The key to investing in a new project is only to use the money you can afford, and then don't expect the new project to give you what you want because the new project has to face challenges from the market and compete with other new projects.

[alexandr1115]

We will be smart once we find a project we think the project can improve on and develop more in the future.
But sadly, we don't know at all because the new project only looks good at the initial launch to attract the interest of the investors and after the launch, there are so many delays that they do so the investors lose faith in the team of the project.
This has happened many times with many projects and only a few have proven that their projects can provide something for their investors.
The key to investing in a new project is only to use the money you can afford, and then don't expect the new project to give you what you want because the new project has to face challenges from the market and compete with other new projects.

It seems to me a lot depends on how you filter projects! We need to understand in more detail what the project offers. At the expense of competition, of course, you correctly noted this. There is different competition in different spheres and therefore it is certainly worth considering. But I think there are many worthy projects on the Ethereum platform. It seems to me that the Ethereum platform is of great importance for the cryptocurrency industry. And altcoins themselves occupy a huge chunk of the market, probably the largest part of the market of all cryptocurrencies, and it is very strange to try to push them into the background. Of course, there are not entirely successful projects and this is also worth considering, but trying to push the altcoin market into the background is absolutely wrong!!