In a world driven by hype and FOMO [Fear Of Missing Out], it becomes clearer every day that an avid crypto enthusiast must have a litmus test for choosing a token to support a world where truly practical projects are hard to find and good projects with long-term prospects are harder to distinguish from money grabbing. ‘shitcoins’.
With recent developments where most new cryptos are hitting record lows, and new ICO Projects not living up to their hype after Crowdsale, it’s now common for the disappointed. that ‘investors’ go around blaming ICO promoters on Social Media, rather than blaming. themselves for not doing the right thing due to the diligence of selecting a most likely post-crowdsale winner before purchasing a token during his or her ICO.
From my extensive observation, it appears that most crypto buyers only buy coins during an ICO based on FOMO (Fear of Missing Out) created by the masters of the hype behind such coins. Many buyers don’t understand the post-ICO purpose of the coin, or what the token should do after the Crowdsale. If nothing happens after the ICO, as is often the case now for many ICOs, they will then jump on social media to shout bloodshed.
Recently, my team and I recently completed a tour of Africa and some parts of the USA to promote the Nollycoin ICO. We organize and sponsor various conferences, live AMA (Ask Me Anything) press meetings, and conduct many one-on-one meetings with Crypto whales, small investors, and crypto millionaire wannabes of every color.
In all of this, one thing that amazes me most of all is that MOST token holders have NO CLUE about the underlying business or project behind the token sale they are participating in.
Even stranger to my observation, is the Strange fact that many cannot tell you the cost proposition of the project, its objectives or the company’s plan to disrupt the market and get a chunk of buyers in their industry. They only buy the ICO because many telegrams or Facebook Pages they visit keep telling them ‘Buy. Hodl and buy more ‘. Most acted only on herd instinct rather than objective deliberation.
Now, if most of the people I met were just teenagers or people with no education, I wouldn’t be surprised at the level of ignorance of the many crypto ‘investors’ I’ve met. On the contrary, many of the ones I met were college graduates and people in some way. Yet less than 10% of them can easily state why they buy a coin in the expectation that it will increase in value over time. Wherever I go, very few in the crowd can tell me the name, experience and capabilities of the corporate managers of the company that sells the coins.
The only thing most of them can point out is that coins are recommended by ‘respected’ influencers when the facts prove that most of them are paid chills to create FOMO and respect for useless shitcoins .
More than so-called fake influencers, many crypto buyers know that the names of team leaders are Russian, Chinese or Korean even if they don’t know about them. It seems like all you need to have a successful ICO is to list the names of people from Korea or China or Russia without anyone being able to verify with a simple Google search.
While I agree that there are many factors to consider in deciding if tokens in a project will increase in value over time, I think acid testing, and the easiest way to weigh, should apply to the coin. itself except for what happens. in crypto exchanges.
Even if most crypto token owners I know don’t even know, the truth is that if you buy a token from most ICOs, you’re never ‘investing’ in that company. You do not buy shares of the company and you do not buy any security from the company.
And best of all, what you do when you buy tokens during most ICOs is ‘donate’ to a project instead of giving away a utility token or coin that is legal with no real value beyond business ecosystem controlled by the issuing company.
In a nutshell, other than your hope that the price of tokens will ‘moon’ or rise to make you a millionaire, there is nothing else you can do with the token other than to enjoy the utility it comes with the company. in the ICO, if any.
Because no one can predict for sure what a Crypto will do in a crypto exchange when it finally gets there, and the latest experience shows that the prices of most tokens are likely to plummet. on the nose in the first few weeks of hitting an exchange (due to large sales by speculators), you better look at how much more value or utility you can get from your token, beyond in the expected ‘mooning’ of the exchange.
As the crypto revolution continues to evolve, change and adapt to various market developments, the only way to ensure that your money doesn’t fall into the gutter is to make sure you can use tokens to earn good value and benefits. even if you can sell it to make an immediate profit on an exchange.
To make this determination you need to ask yourself this key question: What is the value, product or service that the token company sells that will generate that will give me enough value for my money to make this purchase worth my time?
In a world of crashing prices of tokens on various exchanges, the more opportunities you have to get real-life use with a token outside of the crypto exchange’s expected listing, the more good chances are you won’t fail or get stranded. signs that are useless to you.
So, you have to always ask: IF this coin was never sold on an exchange, would I still be happy that I supported the vision? If this token loses 70% of its value in one exchange, can I still use it and get the value of my money elsewhere with it?
If you can’t answer these questions positively after reviewing WHITEPAPER and investing in the company’s claims, then you should think twice before buying the coin.
A Recent Case Study
Get a current ICO like Nollycoin which is the token that drives a blockchain-powered film distribution ecosystem. Coin promoters have created various utility scenarios for coin buyers to ensure that no matter what happens to Nollycoin on the crypto exchange, their backers and token hodlers will continue to smile.
Some of the major utilities included with the Nollycoin token in the Nollytainment ecosystem include
• Ability to use Nollycoin token to watch exclusive movies and movie trailers
• Ability to use Nollycoin tokens to access 1,000s of movies on their Netflix-on-steroids blockchain Movie distribution.
• Ability to use Nollycoin tokens to purchase NollyMall products and services as an Amazon platform for entertainment-based products.
• Ability to use Nollycoin tokens to pay for school fees on the NOLLY Academy platform and partner companies
As you can see, beyond the normal expectation that tokens can be listed on a crypto exchange platform, you need to look beyond the hype of an ico the immediate and future use of the token and viability of the underlying project. behind it.