Does Making Money From a Coin Mean the Project Is Successful?

[Joy- maker]

One thing I have noticed in the crypto space is that people judge a project based on how much its investors have made.  As in whenever a coin increases in price and early investors start making profit from the coin and start celebrating people begin to describe the project as a successful one.

But, does making money alone from a project prove that the project is successful?
As for me, buying a particular crypto for $100, and selling it months later for $1000 doesn't automatically mean the project is doing well

There are some questions you should ask about the project.

First, does the project have real purpose?
Second, are the developers still working on it?
Third, is the community growing naturally?
Lastly, are people actually using the coin for what it was created to do, or are they buying it simply because they expect the price to increase?

Why all these questions are necessary is because, there are coins that experience massive price increase because of hype, social media attention, speculation or a temporary increase in demand.  During the period early investors make massive profit, but when the excitement disappears wonders go happen and people go lose money weting no good.

[WhoYouCantKill]

Far from it. Even scam and weak projects one time gave people some hell of a profits you know, but did that make them a successful one? As a matter of fact, I don’t even think there’s any project that people have not made money from. You need to also know that in some coins, while others are making money, there are also others who are actually losing, in fact it’s also a less gain, more losses thing. So gaining or making money from a project doesn’t prove that the project is a good one or would be a successful one.

[ZeroVinsonN]

Something the developers abandon the project after listing, they've made their money from it so to them it doesn't even matter anymore, it's usually the people who pour their money into it that end up losing and yes a few might actually make profit from, but ultimately calling it successful because of that few is short sighted where you compare their numbers to that of those who lost money to the project especially for a project that was carried by hype with so many people expecting more from it, projects like that attract more money which makes the losses even greater when they fail.

[Frankolala]

A project is said to be successful in the long run if the price increases overtime because it shows that there is a problem that it's solving. Any coin that was only hyped will die off naturally overtime because nobody will invest their money into a shitty project. Talking about a successful coin, you talk about bitcoin because it's solving more than one problem.

Making profit from shitcoins is luck and not that the project is successful. For example, NOTCOIN came out and those who took part in tap and earn made some good bucks when the coins was listed in exchange, the price was $0.01 and went to $0.028. The current price of NOTCOIN is 0.00048 but people made money back then from this project.

[Cossyblack]

If the community isn't growing,it's either they don't have a well structured marketing teams who will be promoting their coins or they are just there for the moment to make the money, once they get what they want, they simply abandon the coin to die and that where people lose money. if a coin is not well promoted, investors can't come in from nowhere and invest in it. promotion attracts people from far and near to give a coin the benefit of the doubt. The business of investing in a newly launched cryptocurrency is risky but promotion helps the coins to get wider visibility. When investors get the impression that this coin might be profitable over time, they will take the risk of investing in it based on their investments objectives, that's how promotion works, it gives people the positives impression that your coin is good for investment. So if the developers of that coin isn't spending much on marketing just know that the coin won't stay higher in the market for long.

[Antidote47k]

In my opinion, whether a project is successful is subjective to perspective. If the investors make money from the project from their own point of view it safe to assume the project as successful and the same could be said for the community but in the general sense of things it’s exactly the way you put it, achieving said goals and objectives and long term sustainability is what should be considered a successful project but we know that for most of these projects the goals and objectives are just secondary, the primary goal is usually money and that’s why most don’t reach their full potential before collapsing!
That’s the benchmark, separating financial benefits from goals and objectives. The latter has to take priority!

[Joeboy]

...

Even scam project can use massive profit to lure folks into investing into athe assets, and before one is realizing what is happening other early investor have sold and then the project dumps right in the face of the new investors...This are the nature of shitcoins, they have no actual use value.. They all just exist because of hype, and once that hype in no more folks start selling and the projects begins dumping... Honestly I don't think it is even advisable for anyone to invest in project like this, then again it is at everyone discretion to do as they wish...Then again Researching is very important as it helps one to properly distinguish between the scams from the actual legit assets..So no matter how real a project sound folks should never fall victims to just pouncing into it without understanding it properly..Asset with a stagnated community seem like a red flag already...

[Brizi5000]

A project being successful is not just about profits, it needs to achieve a strategic impact to the community and the core problem it was built for must need to be achieved then every other gains that follows suit are just secondary. Yes, people can make profit from a particular coin but for how long will it continue, most of them are just pump and dump projects so you can’t say that a dumped project is a successful one simply because it once pumped profit to early adopters. When the end users are able to trust the movement of a project even though it’s still not profitable but there’s a high potential value that they see in the project, not just for now but for tomorrow and beyond.

[Loyang]

What every fraudulent coin does is that in the beginning we see the value of the coin increase very quickly and the promotion of these coins is very strong. Whenever there is strong promotion, every person is attracted to these coins and then the game of fraud starts.

We need to understand several things before investing in a coin or buying a coin. For example,

Knowledge about technology
How the coin works, for example, in the case of Bitcoin, we see the blockchain network.
How many coins will be seen in the market
Whether there has been any problem in the market since the coin was released.
etc. It will be the right decision to invest after seeing all these things.

[Moreno233]

If you have heard about pump and dump, you will know that you can make money from even shitcoins. All you need in this is luck to be able to buy and the right time and sell when the market is being pumped. As usual, this comes with risk because you can lose all your money in the process of chasing the pump. So, whenever you set out to follow this approach, only invest what you can afford to lose so that if you miss the pump, you can endure the pain of holding bag of shitcoins that you many never see the liquidity to sell them.

[The Founding Titan]

If you have heard about pump and dump, you will know that you can make money from even shitcoins. All you need in this is luck to be able to buy and the right time and sell when the market is being pumped. As usual, this comes with risk because you can lose all your money in the process of chasing the pump. So, whenever you set out to follow this approach, only invest what you can afford to lose so that if you miss the pump, you can endure the pain of holding bag of shitcoins that you many never see the liquidity to sell them.

Does that make the shitcoin successful? I think that's the point OP is trying to raise, just because you made money from a coin doesn't make it a successful coin. What's the point when after a coin pumped and made a lot of people money only for it to completely fade away the next couple of months to the point where holding it's entire supply (if at all) will still amount to dust, at that point it doesn't matter that the coin pumped some time back because no one is going to call such a coin a successful coin.

[Ishicryptic]

This is the reason why there are too many scam projects in the crypto market, when newbies who don't know about pump and dump hear how a cryptocurrency can give their holders 100x to 1000x profit within a very short period of time they wouldn't bother to research before entering the market. Too many get rich quick schemes in the crypto market is the reason why a lot of people are falling for scams, any cryptocurrency that has the potentials of giving you a lot of profit on a short time has a double potential of making you to lose your money very fast.

There are countless crypto projects that have died, they will pump and reach ATH and after a lot of investors will rush into it with their hard earned money the developers will exit and the token will never recover again. For peace of mind choose Bitcoin, if it dip we all know that it is usually a good time to buy because it has potentials to recover and reach ATH.

[Agbamoni]

One thing I have noticed in the crypto space is that people judge a project based on how much its investors have made.

This is wrong. Crypto enthusiasts judge a project based on the performance and utility of the coin. A project's performance is tied to its market capitalization. And when this happens, the investors get profit. This means that a project is willing to pay investors profit and capital but still fails if they have made enough profit from the people who trade the coin on a daily basis (liquidity).

As in whenever a coin increases in price and early investors start making profit from the coin and start celebrating people begin to describe the project as a successful one.

You've forgotten we have investors, traders, and the rest of the world in one project. From the investors point of view, success is when they make a profit from their investment in a project.

[Sammysmart001]

Does that make the shitcoin successful? I think that's the point OP is trying to raise, just because you made money from a coin doesn't make it a successful coin. What's the point when after a coin pumped and made a lot of people money only for it to completely fade away the next couple of months

In crypto presently this the biggest illusion right now. Most guys do make up to 10x on pump and dump token or meme coin and once they begin to call it a successful project and they also start to defend the developers. Just making of money from a coin does not mean that the project is successful, it just a successful extract of liquidity from the people who bought the top.

Project that survives a bear market, solves the problems it claimed to solve and also continues to grow it users base. That a true successful project. Profit alone if not actually a proof of success, it just a byproduct, not just it price chart.

[Big Dirams]

If you have heard about pump and dump, you will know that you can make money from even shitcoins. All you need in this is luck to be able to buy and the right time and sell when the market is being pumped. As usual, this comes with risk because you can lose all your money in the process of chasing the pump. So, whenever you set out to follow this approach, only invest what you can afford to lose so that if you miss the pump, you can endure the pain of holding bag of shitcoins that you many never see the liquidity to sell them.

You are right, making profits from a project doesn’t technically assume that the project is successful. When making profits from a projects means that the projects is successful then a lot of this memecoins projects are successful because investors make profits from them but what happen at the long run they fail to pump again and move towards making bright future and the projects end up being abandon.
Pump and dump is commonly found among this memecoins projects because they don’t come into the crypto industry to stay and aim for future instead they are also here for a short term just to see who they could take advantage of. So apparently making money from a coin doesn’t mean such projects is successful.

[Derekfunds]

Op, I think these questions you are asking is not necessary to me because my plan or target is not to invest in that project forever and since it is not an asset like Bitcoin, there is a high possibility that the project won't last for long. If I bought an asset $100 and after some period of time the $100 asset is now worth $1k, all I will do is sell it out since my intention already was to make profit and not to stay in there forever because it can crash or dump because this is what most project has been doing.

[Doan9269]

I have seen several crypto projects where some investors made a profit. After some time, others who came in lost because the market couldn't perform as it did in the earlier experience of the early bird investors. This is where we need to track the performance to know whether the market cap is increasing based on the rate at which investors are pulling funds towards the project, or whether they are rather withdrawing their investment from it. You need to do enough research and ensure that we are still making the right decision so as not to miss the opportunity to invest.

[Call_Me_Guru]

People who judge a crypto project by what they made from it are unfair, such is never the measuring gauge of a successful coin. The coin that was successful for a while may not be successful later, all these have to be weighed together before calling any coin successful.

An investor could make a huge return from a shitcoin, does that make it successful? They could even plan their rug pull effect and the first set who invested made the money before they started pulling their tricks before they finally run the project down as usually seen. Can the person who made money from such a coin sincerely say it is successful?

The successful coins are the ones that tested the positive and negative effects and factors and still standing, having their demand and supply injected yearly fairly and still standing, with a good number of daily transactions for payment and many other utilities.

[Joy- maker]

One thing I have noticed in the crypto space is that people judge a project based on how much its investors have made.

This is wrong. Crypto enthusiasts judge a project based on the performance and utility of the coin. A project's performance is tied to its market capitalization. And when this happens, the investors get profit. This means that a project is willing to pay investors profit and capital but still fails if they have made enough profit from the people who trade the coin on a daily basis (liquidity).

What is wrong here? This is because of the knowledge you have gained from Bitcointalk, you guys should stop assuming that everyone has the same level of knowledge or understanding of crypto as you, mind you, you are missing the point of the argument.  My point is simply, making money from a coin doesn't automatically mean that the project behind it is successful.  Don't you know that a coin can perform well in the market,  make its investors good money without offering any meaningful utility, or a sustainable future? Instead of dismissing my argument,  try to understand the point I'm making before jumping to conclusions.

You've forgotten we have investors, traders, and the rest of the world in one project. From the investors point of view, success is when they make a profit from their investment in a project.

I understand your point, but I was specifically talking about investors and how people use the profit they make to judge the success of a project.

[Dr.Bitcoin_Strange]

Well, it's possible that some investors could agree or say that a project is successful because of the profit they have made from the coin or token, however if we want to define a successful project we should draw our definition from Bitcoin's success. Bitcoin has been growing in value since it was developed, the community has been growing as well and the usage of Bitcoin has also been booming and that's what true success mean. A successful project is supposed continue growing in value, increase demand, increase users case, etc.