In a world fueled by hype and FOMO [Fear Of Missing Out]It is becoming clearer every day that an enthusiastic cryptocurrency enthusiast needs to have a litmus test to choose a token to support in a world where genuine viable projects are hard to find and good projects with long-term prospects are even harder to come by. distinguish from money hoarders. ‘shit coins’.
With recent developments where most new cryptocurrencies are hitting record lows, and new ICO projects failing to live up to their hype after the Crowdsale, it is now common for disappointed “investors” to blame the promoters of ICO on social networks, instead of blaming. themselves for not doing proper due diligence to pick the most likely winner after the sell-off before buying a token during their ICO.
Based on my extensive observation, it seemed that most cryptocurrency buyers simply bought coins during an ICO based on the FOMO (fear of missing out) created by the hype masters behind those coins. Many simply bought without understanding the post-ICO purpose of the coin, or what the token was supposed to do after the Crowdsale. When nothing happened after the ICO, as is often the case now for many ICOs, they would jump onto social media to scream bloody murder.
My team and I recently finished a tour of Africa and parts of the US to promote the Nollycoin ICO. We organized and sponsored different conferences, did live AMA (Ask Me Anything) press meetings, and held many one-on-one meetings with Cryptowhales, small investors, and aspiring crypto-millionaires of all stripes.
Regardless, one thing that amazed me more than anything was that MOST of the token holders HAD NO CLUE about the underlying business or project behind the token sales they were participating in.
Even stranger in my observation was the staggering fact that many couldn’t tell him the project’s value proposition, its goals, or the company’s plan to break into the market and grab a share of the buyers in their industry. They simply bought the ICO because various Telegram or Facebook pages they visited told them to ‘Buy’. Hodl and buy more’. Most simply acted on herd instinct rather than objective deliberation.
Now, if most of the people I met were just teenagers or uneducated people, I wouldn’t have been so surprised at the level of ignorance of many of the crypto ‘investors’ I met. Rather, many of those I met were college graduates and people of some means. However, less than 10% of them could easily articulate why they bought a coin with the expectation that it would increase in value over time. Wherever I went, very few in the crowd could tell me the name, experience, and ability of the corporate managers of the company selling the coins.
The only thing most of them could point to was that the coins were recommended by ‘respected’ influencers when the facts have shown that most of them were paid chills to create FOMO and respectability for shitty coins that would otherwise be useless.
Beyond the so-called fake influencers, all many cryptocurrency buyers knew was that the names of the team leaders were Russian, Chinese, or Korean, even though they knew absolutely nothing about them. It was as if all you needed to have a successful ICO was to list names of people from Korea, China or Russia that no one could verify with a simple Google search.
While I agree that there are certainly many things to consider in deciding whether a project’s tokens would increase in value over time, I believe the litmus test and most immediate evaluation criterion should be the utility of the coin itself. herself outside of what would happen. on crypto exchanges.
Although most crypto token owners I met didn’t even know it, the reality is that if you buy a token from most ICOs, you’re not actually “investing” in that company. You would not be buying shares of the company and you would not be buying any securities of the company.
And, at best, what you were doing when buying tokens during most ICOs was ‘donating’ to a project in exchange for receiving a utility token or coin that legally had no real value beyond the ecosystem. company controlled by the issuing company.
In other words, aside from your hope that the price of the tokens will ‘hit the moon’ or rise to make you a millionaire, there is not much else you can do with the token other than enjoy the utility that the ICO company gives you. , if any.
Since no one could predict with certainty how a cryptocurrency would behave on a cryptocurrency exchange when it finally got there, and the most recent experience has shown that the prices of most tokens would likely crash within the first few weeks of reaching an exchange. (due to large sell-offs by speculators), it would make sense for you to look at what other value or utility you could derive from your token, beyond the expected “struggle” on the exchange.
As the crypto revolution continued to accelerate, transform and adapt to different developments in the market, the only way to ensure that your money doesn’t go to waste is to ensure that you can still use those tokens for excellent value and profit. even if you could sell it for a profit immediately on an exchange.
In making this determination, you need to ask yourself this primary question: What is the value, product, or service being generated by the company selling the token that will give me enough value for my cash to make this purchase worthwhile?
In a world of falling token prices on different exchanges, the more opportunities you have to get real life use with an off-list token on the crypto exchange, the better chance you won’t end up frustrated. or stranded with tokens that are of no use to you.
So you have to ask yourself again and again: IF this coin was never traded on an exchange, would I be happy that I supported the vision? If this token lost 70% of its value in a trade, can I still use it and get value for money elsewhere with it?
If you were unable to answer these questions positively after reviewing the WHITEPAPER and reversing the company’s claims, then you should think twice before buying that coin.
A recent case study
Take a current ICO like Nollycoin, which is the token that powers a Blockchain-enabled movie distribution ecosystem. The promoters of the coin have created different utility scenarios for the buyers of the coin to ensure that no matter what happens to Nollycoin on the crypto exchange, its backers and tokens will continue to smile.
Some of the great utilities attached to the Nollycoin token in the Nollytainment ecosystem include
• Ability to use Nollycoin tokens to watch exclusive movies in cinemas and movie theaters
• Ability to use Nollycoin tokens to access thousands of movies on their Netflix blockchain movie distribution on steroids.
• Ability to use Nollycoin tokens to purchase products and services on NollyMall, which is like an Amazon platform for entertainment-based products.
• Possibility of using Nollycoin tokens to pay school fees on the NOLLY Academy platform and partner companies
As you can see, beyond the normal expectation of tokens being listed on a crypto exchange, you need to look beyond the hype of an ico, the immediate and prospective utility of the token, and the viability of the underlying project behind it. the.
