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Cryptocurrency discussions / Re: token dump, the unwanted consequence of airdrops & bounties
« on: September 18, 2020, 09:45:38 PM »I want to talk about a subject seldom addressed, it is the token dump that follow the airdrops and bounties.
Most ICOs and projects are not aware of this, but seasoned bounty managers and bounty hunters know this very well.
The ICO price will get hammered once the airdrop & bounty are distributed.
Of course how much will depend on several factors:
- Quantity of tokens given to bounty hunters and through airdrops
- Demand price and capacity.
But it is not surprising that the people that got the token for "free" sell them for as low as 1/10th the ICO price.
token dump is the unwanted consequence of airdrops & bounties
This is partly true though. Reason been that i have also seen situation when token price dumped as soon as investors got their tokens from distribution, while bounty/airdrop shares were yet to be distributed. Generally, i feel it all depends on the project team itself. How strong is their marketing as well as usability of their asset.