In a world driven by the hype and FOMO (fear of running out), it becomes more and more clear every day that a diligent crypto enthusiast must have a litmus test to choose a token to support in a world where the Genuine viable projects are hard to come by, and good projects with long-term prospects are even harder to distinguish from money-hungry 'shitcoins'.
With recent developments where most new cryptos are hitting all-time highs and new ICO projects not living up to their hypes after the Crowdsale, it is now common for 'investors'. disappointed to blame ICO promoters on social media, rather than blaming themselves for not doing their due diligence in picking the most likely post-sale winner before buying a token during its ICO.
From my in-depth observations, it turned out that most cryptocurrency buyers were simply buying coins during an ICO based on the FOMO (Fear of Missing Out) created by the masters of the hype behind these parts. 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 was happening after the ICO, as is often the case today with many ICOs, they would then jump on social media to cry bloody murder.
Recently my team and I just completed a tour of Africa and parts of the United States to promote ICO Nollycoin. We have hosted and sponsored various conferences, hosted live Ask Me Anything (AMA) press meetings, and held many one-on-one meetings with crypto whales, small investors and aspiring crypto-millionaires of all stripes.
Through it all, one thing that amazed me most of all was that MOST token holders had NO clue about the business or project behind the token sale. in which they participated.
Even stranger in my observation was the astonishing fact that many couldn't tell you the value proposition of the project, its goals or the company's plan to disrupt the market and catch some of the buyers. in their sector. They just bought the ICO because several telegrams or Facebook pages that they visited kept telling them to 'Buy'. Hodl and buy more ”. Most were simply acting 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 'investors & # 39; & # 39; crypto that I have encountered. On the contrary, many of those I met were college graduates and people of certain means. Still, less than 10% of them could easily explain why they bought a part in the hope that it would appreciate in value over time. Everywhere I went, very few in the crowd could tell me the name, experience and abilities of the leaders of the company selling the parts.
The only thing most of them could point out was that the pieces were recommended by 'respected' influencers. when the facts proved that most of them were paid to create FOMO and respectability for otherwise unnecessary shitcoins.
Beyond the so-called fake influencers, all that many crypto buyers knew was that the names of the team leaders were Russian, Chinese, or Korean although they absolutely did not know nothing about them. It was as if all you need to have a successful ICO is to list names of people from Korea, China or Russia that no one can even verify with a simple Google search.
While I agree that there is certainly a lot to consider when deciding whether a project's tokens would increase in value over time, I think the acid test, and the criteria for acid. Most immediate assessment, should be the usefulness of the room itself apart from what would happen. in crypto exchanges.
While most crypto token owners I've met don't even know it, the reality is if you were to buy a token from most ICOs, you weren't really investing in that business. You would not buy shares of the company and you would not buy any securities of the company.
And at best, what you did when buying tokens during most ICOs was 'donate'. to a project in exchange for receiving a utility token or coin that legally had no real value beyond the trading ecosystem controlled by the issuing company.
In other words, other than your hope that the price of the “ moon '' tokens or increases to make you a millionaire, there is not much you can do with the token other than to profit from the utility attached to it by the ICO company, if only.
Since no one could really predict for sure how a crypto would perform on a crypto exchange when it finally gets there, and most recent experience has shown that the prices of most tokens would likely dip into the first few weeks after a trade (due to large sales by speculators) it would make sense for you to look at what other value or utility you might get from your token, beyond the 'mooning'. expected on exchange.
As the crypto revolution continued to turn, transform, and adapt to different developments in the market, the only way to ensure that your money doesn't get thrown down the gutter is to go down the drain. be sure you can still use these tokens to get great value for money and benefits. although you could sell it for immediate profit on an exchange.
In making this decision, you need to ask yourself this main question: What is the value, product or service generated by the company selling the token that will give me enough value for my money to make this purchase worth it? trouble?
In a world where token prices are crashing on different exchanges, the more opportunities you have to get real use with a token outside of the expected list on the crypto exchange, the better. chances are you don't end up frustrated or failed. tokens that are useless to you.
So you have to ask yourself over and over again: IF this coin has never been traded on the stock exchange, would I still be glad I supported the vision? If this token lost 70% of its value in a trade, can I still use it and get my money's worth elsewhere?
If you cannot answer these questions positively after reading the WHITE PAPER and investing the business receivables, you should think twice before purchasing this coin.
A recent case study
Take a current ICO like Nollycoin, which is the token fueling a Blockchain-enabled movie distribution ecosystem. The coin's promoters have created different utility scenarios for coin buyers to ensure that whatever happens to Nollycoin in the crypto exchange, their backers and token buyers keep smiling.
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 cinemas
• Ability to use Nollycoin tokens to access thousands of movies on their Netflix-on-steroids blockchain movie distribution.
• Ability to use Nollycoin tokens to purchase products and services at NollyMall, which is like an Amazon platform for entertainment products.
• Possibility to use Nollycoin tokens to pay tuition 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 prospective utility of the token and the viability of the underlying project behind it.