In a world driven by hype and FOMO [Fear Of Missing Out]every day it becomes clearer that a diligent cryptocurrency enthusiast has to pass the litmus test of choosing a token to support in a world where real viable projects are hard to find and good projects with long-term prospects are even harder to distinguish from cash grabs. ‘shitcoins’.
With recent developments where most new cryptocurrencies have reached record highs and new ICO Projects after Crowdsale fail to live up to their hype, it is now common for disappointed ‘investors’ to blame Social Media instead of blaming the ICO promoters. themselves for not doing their due diligence to pick the most likely post-crowdsale winner before buying a token during the ICO.
From my extensive observations, most crypto buyers simply bought coins during the ICO based on the FOMO (Fear of Missing Out) created by the hype masters behind these coins. Many simply bought without understanding the purpose of the coin after the ICO or what the token was supposed to do after the Crowdsale. When nothing happened after the ICO, as with many ICOs now, they jumped on social media to cry bloody murder.
Recently, me and my team finished a tour to Africa and parts of USA to promote Nollycoin ICO. We’ve organized and sponsored different conferences, held live AMA (Ask Me Anything) press conferences, and held many one-on-one meetings with Crypto whales, small investors, and crypto millionaires of all stripes.
Despite all of this, one thing that amazed me more than anything else was that MOST token holders have NO CLUE about the underlying business or project behind the token sales they are participating in.
What was strange in my observations was the amazing fact that most people couldn’t tell you the value proposition of the project, their goals, or the company’s plan to disrupt the market and capture a share of buyers in their industry. They simply bought the ICO because some telegram or Facebook page they visited told them to “Buy”. Hodl and buy more. Most acted on herd instinct rather than objective thinking.
If most of the people I met now were just teenagers or uneducated people, I wouldn’t be so surprised at the level of ignorance of many of the crypto ‘investors’ I meet. Instead, most of the people I met were college graduates and people of some means. However, less than 10% of them could easily articulate why they bought a coin, expecting it to increase in value over time. Everywhere I went, very few people could tell me the name, experience and skill of the corporate executives of the coin company.
The only thing most of them could point to was that the coins were recommended by ‘respectable’ influencers, which the facts proved, most of them cashed in to create FOMO and gain respectability for otherwise useless shitcoins.
Apart from the so-called fake influencers, many cryptocurrency buyers knew that the names of the team leaders were Russian, Chinese or Korean, although they knew absolutely nothing about them. All you needed to have a successful ICO was to list the names of people from Korea, China, or Russia that you wouldn’t even be able to verify with a simple Google search.
While I agree that there are many things to consider when deciding whether a project’s tokens will increase in value over time, I think the acid test and most immediate evaluation criteria should be the utility of the coin itself beyond what will happen. on cryptocurrency exchanges.
Although most crypto-token holders I’ve met don’t know this, the reality is that if you’ve bought a token from most ICOs, you haven’t really “invested” in that company. You would not buy shares in the company and you would not buy any securities from the company.
And at best, what you were doing when buying tokens during most ICOs was “donating” to a project in exchange for a useful token or coin that legally has no real value from a business ecosystem controlled by the issuing company.
In other words, there isn’t much you can do with a token other than hope that the price of the tokens will “moon” or rise to make you a millionaire, other than enjoy the utility that the ICO company adds to it. if any
Since no one can predict exactly how a cryptocurrency will perform on the cryptocurrency market when it finally gets there, and recent experience has shown that the prices of most tokens will likely fall within the first few weeks of listing (due to large speculator sales), the expected “rollover” in the market otherwise, it would make sense to consider what other value or benefit you can get from your token.
As the cryptocurrency revolution continues to shift, change and adapt to various developments in the market, the only way to ensure that your money is not wasted is to make sure that you can still use these tokens for great value and benefit. even if you can sell it for an immediate profit on the stock market.
When making this decision, you need to ask yourself this key question: What is the value, product, or service that the company selling the token is creating that will provide enough value for my money to make this purchase worth it to me?
In a world of falling token prices on different exchanges, the more opportunities you have to use a token outside of the expected list on a crypto exchange in real life, the better chance you have of not getting frustrated or stranded. signs that are useless to you.
So you have to ask again and again: IF this coin was never traded on an exchange, would I still be happy supporting the vision? If this token has lost 70% of its value on the exchange, can I still use it and get my money’s worth elsewhere?
If after reviewing the WHITEPAPER and investing in the company’s claims, you couldn’t answer these questions in the affirmative, you should think twice before buying that coin.
Recent Case Study
Take a current ICO like Nollycoin, a token powering a blockchain-enabled movie streaming ecosystem. The coin’s promoters have created various beneficial scenarios for the coin’s buyers to ensure that their backers and token hodlers continue to smile regardless of what happens with Nollycoin on the cryptocurrency exchange.
The Nollytainment ecosystem includes some great utilities attached to the Nollycoin token.
• Ability to use Nollycoin tokens to watch exclusive movies in cinemas and movie houses
• Ability to use Nollycoin tokens to access 1000s of movies on Netflix-on-steroids blockchain Movie distribution.
• Ability to use Nollycoin tokens to purchase products and services on NollyMall, which is like Amazon’s platform for entertainment-based products.
• Ability to use Nollycoin tokens to pay school fees on the NOLLY Academy platform and partner companies
As you can see, beyond the usual expectation that tokens will be listed on a cryptocurrency platform, you need to look beyond the hype of the ico and look at the immediate and prospective benefit of the token and the viability of the project behind it.