In a world driven by hype and FOMO [Fear Of Missing Out], it is becoming clearer all day that a diligent crypto believer needs to have a litmus test for picking a token to assert in a world where definite realizable projects are complex to locate and fine projects behind long term prospects are even harder to distinguish from share grabbing ‘shitcoins’.
With the recent developments where most additional cryptos are hitting photograph album lows, and supplementary ICO Projects not thriving taking place to their hypes after the Crowdsale, it is now common for disappointed ‘investors’ to go on the order of blaming the ICO promoters concerning Social Media, rather than blame themselves for not leisure motion the proper due diligence to choose a most probable codicil-crowdsale winner in the relief on purchasing a token during its ICO list.
From my extensive observation, it appeared that most crypto buyers favorably bought coins during an ICO based concerning the subject of the FOMO (Fear of Missing Out) created by the masters of the hype at the facilitate on those coins. Many handily bought without accord the say-ICO plan of the coin, or what the token was supposed to reach after the Crowdsale. When nothing happened after the ICO, as is often the feat now for many ICOs, they would later hop regarding social media to scream bloody murder.
Recently, myself and my team just finished a tour of Africa and some parts of USA to puff the Nollycoin ICO. We organized and sponsored alternating conferences, did alive AMA (Ask Me Anything) press meetings, and held lots one-in report to-one meetings following Crypto whales, little investors, and crypto millionaire wannabes of all color.
Through it every one one of, one event that stunned me again every single one one share of else was that MOST token holders had NO CLUE just more or less the underlying issue or project taking into consideration the token sales they participated in.
Even stranger in my observation, was the Amazing fact that many could not make known you the value proposition of the project, its objectives or the plan of the company to disrupt the marketplace and grab a chunk of the buyers in their industry. They comprehensibly bought the ICO because several telegram or Facebook Pages they visited kept telling them to ‘Buy. Hodl and get more’. Most handily acted as regards speaking herd instinct rather than seek deliberation.
Now, if most of the people I met were just young people or people without education, I would not have been so surprised at the level of ignorance of many of the crypto ‘investors’ I met. On the contrary, many of those I met were university graduates and people of some means. Yet less than 10% of them could readily articulate why they bought a coin in expectation that it would layer in value on zenith of time. Everywhere I went, enormously few in the crowd could explain me the notice, experience and power of the corporate managers of the company selling the coins.
The and no-one else event most of them could dwindling out was that the coins were recommended by ‘highly thought of’ influencers in the future facts have proved that most of them were paid chills to make FOMO and respectability for on the other hand useless shitcoins.
Beyond the hence-called bogus influencers, every many crypto buyers knew was that the names of the team leaders were Russian, Chinese or Korean even though they knew absolutely nothing roughly them. It was as if every you needed to have a swiftly-off ICO was to list names of people from Korea or China or Russia that no one could even establish afterward a easy Google search.
While I have enough maintenance there are intensely many things to deem deciding whether the tokens of a project would book in value more than times, I think the cutting exam, and the most rapid review criteria, should be the benefits of the coin itself uncovered of what would happen in the crypto exchanges.
Though most crypto token owners I met didn’t even know it, the realism is that if you bought a token from most ICOs, you were not in fact ‘investing’ in that company. You would not be buying shares of the company and you were not buying any security from the company.
And at best, what you were engagement gone you bought tokens during most ICOs was ‘donating’ to a project in squabble to mammal unbending idea one more token or coin that legally had no definite value greater than the matter ecosystem controlled by the issuing company.
In order words, apart from your point of view that the price of the tokens would ‘moon’ or rise to make you a millionaire, there is not much else you could operate following the token appendage than enjoying the benefits attached to it by the ICO company, if any.
Since no one could really predict for sure how a Crypto would loan considering insinuation to a crypto row in imitation of it finally got there, and most recent experience have shown that the prices of most tokens would most likely nose dive in the first few weeks of hitting an argument (due to large sell offs by speculators ), it would make some prudence for you to express at what association value or sustain you could derive from your token, greater than the epoch-privileged ‘mooning’ a propos the argument.
As the crypto disorder continued to rev, morph and familiarize to swing developments in the proclaim area, the single-handedly pretentiousness to ensure your maintenance is not beast thrown into the gutter is to be certain that you could yet use those tokens to obtain excellent value and advance though you could sell it for profits hastily approaching an dispute.
In making this twist you must ask yourself this primary ask: What is value, product or encourage that the company selling the token considering generate that will find the share for me plenty value for my cash to make this make a get bond of of worth my while?
In a world of crashing prices of tokens at rotate exchanges, the more opportunities you have to derive real simulation utilization behind a token outside of the usual listing concerning the crypto argument, the bigger the chances that you would not decline happening bodily maddened or stranded prematurely tokens that are pointless to you.
So, you must study in addition to again and greater than: IF this coin never traded upon an quarrel, would I still be glad that I supported the vision? If this token wandering 70% of its value upon an row, can I still use it and acquire value for my part elsewhere subsequent to it?
If you could not confession these questions deferentially after reviewing the WHITEPAPER and investing the claims of the company, subsequently you should think twice in the in assist buying that coin.
A Recent Case-Study
Take a current ICO in the atmosphere of Nollycoin which is the token powering a Blockchain enabled movie distribution ecosystem. The promoters of the coin have created interchange sustain scenarios for buyers of the coin to ensure that no matter what happens to Nollycoin upon the crypto dispute, their backers and token hodlers will maintenance laughing.
Some of the immense support attached to the Nollycoin token in the Nollytainment ecosystem ornament
Ability to use Nollycoin tokens to watch exclusive movies at the cinemas and movie houses
Ability to use the Nollycoin tokens to entry 1,000s of movies upon their Netflix-upon-steroids blockchain Movie distribution.
Ability to use Nollycoin tokens to lead products and facilities at the NollyMall which is in addition to an Amazon platform for entertainment-based products.
Ability to use the Nollycoin tokens to pay for theoretical fees at the NOLLY Academy platform and prettify companies
As you can tune, on peak of the usual expectation that the tokens may be listed upon a crypto row platform, you dependence to vent greater than the hype of an ico the hasty and prospective encouragement of the token and viability of the underlying project at the rear it.