In a world driven by hype and FOMO [Fear Of Missing Out]It is becoming increasingly clear that a hardworking crypto enthusiast needs to do a litmus test to pick a token to support in a world where truly sustainable projects are hard to find and good projects with long-term prospects are more difficult to separate from money possession.
With recent developments where most of the new crypto records are going down, and new ICO projects are not living up to their hype after the crowdsell, it is now common for frustrated ‘investors’ to blame ICO promoters on social media. Before buying a token during the ICO themselves do not have the proper diligence to select the most likely post-crowdsell winner.
From my extensive observation, it has been found that most crypto buyers bought coins during an ICO based on the FOMO (Fear of Missing Out) created by the hype masters behind those coins. Many bought the token simply without understanding the purpose of the post-ICO, or what to do with the token after the crowdsell. When nothing happens after the ICO, as is often the case with many ICOs, they will jump on social media to shout bloody murders.
Recently, my team and I ended up touring parts of Africa and the United States to promote the Nalicone ICO. We’ve hosted and sponsored various conferences, held live AMA (Ask Me Anything) press meetings, and had lots of one-on-one meetings with crypto whales, little investors, and cryptocurrency millionaires of every color.
Through all of this, one thing that surprised me out of everything else was that most token holders had no idea about the underlying business or project behind the token sales they participated in.
Even the unfamiliar, surprising truth in my observations was that many could not tell you the value of the project, its purpose or the plan to disrupt the company’s market and occupy a part of the buyers in their industry. They only bought ICOs because the few telegrams or Facebook pages they visited told them to ‘buy’. Hold and buy more ‘. Most work on animal instincts rather than just objective discussions.
Now, if most of the people I met were just teenagers or uneducated people, I wouldn’t be so surprised at the level of ignorance of many of the crypto ‘investors’ I met. In contrast, many of the people I met were college graduates and people in one way or another. Yet less than 10% of them can easily tell why they bought a coin in the hope that the price will increase over time. Wherever I went, very few people in the crowd could tell me the names, experiences and abilities of the corporate managers of the companies selling coins.
What most of them might mention is that the coins were recommended by ‘reputable’ influencers when the data proved that most of them were paid respectfully to make FOMO and otherwise useless shitcoins.
With the exception of the so-called bogus influencers, all crypto buyers knew that the names of the group leaders were Russian, Chinese or Korean even though they knew absolutely nothing about them. It was as if all you needed to get a successful ICO was to list the names of people from Korea or China or Russia that no one could even verify with a simple Google search.
While I agree that there are a lot of things to consider in deciding whether a project’s token value will increase over time, I think there should be currency utility beyond the acid test and the most immediate evaluation criteria that will happen. On crypto exchanges.
Although most crypto token owners I see don’t know this, the reality is that if you bought a token from most ICOs, you’re not really ‘investing’ in that company. You are not buying shares of the company and you are not buying any security from the company.
And best of all, during most ICOs when you bought a token, all you did was ‘donate’ a utility token or currency to a project that had no legal value outside of the business ecosystem controlled by the issuing agency.
In turn, the price of the token is ‘moon’ or beyond your hopes of making you a millionaire, you can’t do anything else with the token except enjoy the utility attached by the ICO company, if any.
Since no one can predict exactly how a crypto will perform on a crypto exchange once it finally arrives there, and recent experience has shown that most token prices will probably hit the nose in the first few weeks of hitting an exchange (due to the large sales shutdown by speculators). Beyond the ‘mooning’, it will make some sense for you to see what other value or utility you can get from your token.
As the crypto revolution continues to rev, transform, and adapt to various developments in the market, the only way to ensure that your money is not being thrown down the drain is to make sure you can still get excellent value and benefits using those tokens. Even if you can sell it for an immediate profit in exchange.
When making this decision you must ask yourself this initial question: What is the price, product or service that the company that sells the tokens will give me enough value for my cash so that this purchase is worth my time?
In a world of crashing tokens on different exchanges, the more opportunities there are to use in real life with a token off the list of crypto exchanges, the better the chances that you won’t be disappointed or stuck. Tokens that are useless to you.
So, you must ask again and again: if this currency never trades in exchange, would I still be happy that I supported the vision? If this token loses 70% of its value on an exchange, can I still use it and get my money value elsewhere with it?
If you can’t answer this question positively after reviewing the white paper and investing in the company’s claims, you should think twice before buying that currency.
A recent case-study
Take a current ICO like Nollycoin which is a power token to a blockchain capable movie distribution ecosystem. No matter what happens to Nollycoin on the crypto exchange, coin promoters have created a variety of favorable conditions for currency buyers to ensure that their supporters and token hodlers will be smiling.
The Nollytainment ecosystem includes some great utilities associated with Nollycoin tokens
ক্ষমতা Ability to use Nollycoin tokens to watch exclusive movies in movies and movie houses
ক্ষমতা Ability to use Nollycoin tokens to access 1,000 movies on their Netflix-on-steroid blockchain movie distribution.
ক্ষমতা Ability to use Nollycoin tokens to purchase products and services at NollyMall as an Amazon platform for entertainment-based products.
ক্ষমতা Ability to use Nollycoin tokens to pay school fees on the NOLLY Academy platform and partner companies
As you can see, outside of the usual expectation that tokens could be listed on a crypto exchange platform, you need to look at the immediate and potential usefulness of the token out of the hype of an ico and the effectiveness of the underlying project behind it.