With the Dragon ICO in the midst of selling out the DRG while continuing to launch their operations, one question that will surface in investors or speculators’ minds will be when should they sell their tokens?
This can be difficult to time as we know from the short history of ICO, a large number of ICO will rise and fall in price after the listing of the tokens on crypto exchanges.
The typical token listing begins in a few smaller crypto exchanges before they can get a listing on a large exchange. The price of the token typically maintain the same or may even come down slightly upon listing on the smaller crypto exchanges. This is not uncommon as most tokens, after ICO, are not in heavy demand yet. However upon the company achieving more and more of their promised milestones on their roadmaps, these tokens tend to move back up in prices.
There are exceptions of course. Some tokens are being bought up based on hype or they are backed by certain famous crypto influencers, leading to greater buying activity; even before achieving any mass adoption.
For Dragon, Dragon Coins is already available in the following exchanges: Coinhub, IDEX, Qryptos, Forkdelta, and Etherdelta. This is even before the end of the ICO. However these exchanges are considered as relatively smaller exchanges and would not bring very high volume to Dragon yet. There is a need for the top 10 crypto exchanges to list DRG for price to really moon, so to speak.
A ICO will go through a life cycle of boom and bust (in terms of the price of their token). After listing on the exchanges, there could be dumping of the tokens on the market by early investors who are able to realize their gains due to the bonuses they were awarded for being early to the game. Then the price will regain its value as the company starts achieving more and more of the milestones as promised on their road map. And when it is clear that the ICO is gaining adoption by the market, especially when their tokens are demanded by genuine users of their platform, the token price will finally moon.
For Dragon, the early supporters bought DRG at a price of $1 per token and they were restricted to sell the tokens only after 3 months. For these early supporters, they are already in profit based on the current trading price of DRG at the above-mentioned crypto exchanges. They may sell to realize some profits.
For the junket partners, advisors and founders, their restriction varies but generally it is for a 1 year period. So we are likely to not see heavy selling from them. Moreover these are the parties who are buying DRG for the purpose of running the junkets.
The dumping by early buyers may happen but I do not see this as a huge problem as Dragon has already started to realize their roadmap. Sellers at this stage would think twice as they will miss future gains.
Dragon has already opened junkets in Macau as well as in South Korea, as per their roadmap. See this announcement.
https://medium.com/@DragonINC/dragon-announces-strategic-partnership-with-7luck-7400d8e305c9
So Dragon is starting to achieve their milestones of opening junkets and I believe that more and more junkets will be in the works. With each junket opened and operating, the demand for more and more DRG will increase. Heavier demand implies a greater price in DRG as supply will be limited.
We will also start to see the burning program of DRG after the third month of operation. This is going to start in May 2018 and we will start seeing how much Dragon earns from their operations and how much DRG they will start burning.
When Dragon starts showing strong revenue results, and commence their DRG burning, we will see investors respond by buying up DRG from the exchanges.
Such a strong buying activity will also push the bigger exchanges to list DRG.
The above multiple factors, when combined, will see DRG increase in price in a short time.
Hence the reason why I am proposing for a hold period of 1 year. It is sufficient time for DRG to increase in price and it is also before the restrictions on the founder, advisors and junket partners are lifted.
We as investors, from the main sale, will have the advantage to take some profits before the team does. This structure is very friendly to us investors and clearly in-line with the vision of the Dragon management team to create value for investors.
BoonsterX
Dragon Website : https://drgtoken.io/
WhitePaper: https://bit.ly/drgtoken