Recent Fall in Crypto might pressure ICOs to sell their crypto...

Habiba Aziz

Contributor
Investors like us can hold but ICOs need to sell cryptos to remain operational. The problem is that since the price of crypto fall, they will run out of fund much quicker. This also means that they are more pressured to sell their cryptos. And in large quantities if they feel like the price is gonna drop even further. However, that creates a chain where that will drop the price and pressure other ICOs to dump theirs as well. Now this vicious cycle won't apply to ICOs that are already profitable or diversified their fund. However, considering that most didn't, this is a serious issue.
 

BitFit

Contributor
Investors like us can hold but ICOs need to sell cryptos to remain operational. The problem is that since the price of crypto fall, they will run out of fund much quicker. This also means that they are more pressured to sell their cryptos. And in large quantities if they feel like the price is gonna drop even further. However, that creates a chain where that will drop the price and pressure other ICOs to dump theirs as well. Now this vicious cycle won't apply to ICOs that are already profitable or diversified their fund. However, considering that most didn't, this is a serious issue.

I think we’ve already seen this cycle in effect and maybe we’re coming to an end. ICO’s don’t hold their own coins usually, they just have to watch the price of Ethereum. It’s down 70% from Feb but a lot of ICO money came into Ethereum in the $100-500 price range anyway, so they haven’t “lost” much.

Besides everyone is catching on to how many ICO’s were scams or just useless. Close to 90% have no real,chance of progress. And that will climb as some of the projects not labeled as failed yet eventually do fail. ICO’s hurt crypto a lot more than they helped overall.
 

The CC Forums

Admin
Staff member
I think we’ve already seen this cycle in effect and maybe we’re coming to an end. ICO’s don’t hold their own coins usually, they just have to watch the price of Ethereum. It’s down 70% from Feb but a lot of ICO money came into Ethereum in the $100-500 price range anyway, so they haven’t “lost” much.

Besides everyone is catching on to how many ICO’s were scams or just useless. Close to 90% have no real,chance of progress. And that will climb as some of the projects not labeled as failed yet eventually do fail. ICO’s hurt crypto a lot more than they helped overall.

A lot of them keep unissued tokens that they can sell on open market to raise money later. The amounts vary widely. Sometimes 10% goes to founders, sometimes 30% or more of the tokens stay with the developers as an incentive to create value in the projects. Amounts are all over the map, nothing is standardized.

But then if they raised $50 million in Ethereum at $250 or even $500, I’m not sure holding their own tokens adds much to their personal net worth. In the case of the scams and failed projects I mean. Not the few legit projects out there. A different analysis applies to those. But even those could be dumping ether.
 
Top