Why Oversubscribed ICOs underperform in the exchanges out of the gate

in ico •  6 years ago 

Usually I end up seeing something like below and get enticed

Estimate token price (USD per TOKEN) :

Seed = 0.05 USD per TK
Strategic round = 0.12 USD per Token TK
Private round = 0.20 USD per TK
Crowd sale = 0.25 USD per TK or may cancel entirely the crowd sale round

After all analysis I decide to invest. I then wait for the token to land either in crowd sale or if I get access a bit early. So I wait out for 1-6 months and get my tokens.

The first day it comes out, I understand that I have lost 75% to 90% of the value.
I keep asking myself..what really happened?

Plain and simple I see that the Seed investors want to get their returns( a quick 100- 300 percent in this market and they want to move on. So the commitment to Crowd sale people or even the private sale folks who love the tech of the company is very very little for most projects.

In fact , the Seed round investors might actually take over the decision making process and make it hell for the Project Visionary.

Now how do we wisen up to the tricks of the seed investors and not lose the money at hand..I welcome your comments.

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