In a world driven by hype and FOMO [Fear Of Missing Out]It is becoming clearer every day that a keen cryptocurrency enthusiast needs to have a litmus test in choosing 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 find. distinguish from money hoarders. ‘shit coins’.
With recent developments where most new cryptocurrencies are hitting all-time lows, and new ICO projects are not living up to their expectations post-Crowdsale, it’s now common for disappointed “investors” to blame the promoters of cryptocurrencies. ICO on social media, instead of blaming themselves for not doing proper due diligence to pick the most likely winner after the sell-off before purchasing a token during their ICO.
From 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 post-Crowdsale. When nothing happened after the ICO, as is often the case now for many ICOs, they would jump on social media to scream bloody murder.
My team and I recently just finished a tour of Africa and some 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 cryptomillionaires of all stripes.
Regardless, one thing that astonished me more than anything was that MOST token holders HAD NO CLUES 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 you the project’s value proposition, its goals, or the company’s plan to break into the market and grab a slice of the buyers in its industry. They simply bought the ICO because various Telegram or Facebook pages they visited were telling them to ‘Buy’. Hodl and buy more’. Most simply acted out of 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 by the level of ignorance of many of the crypto ‘investors’ I met. On the contrary, 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 shivers to create FOMO and respectability for otherwise bullshit coins. 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 when deciding whether a project’s tokens would increase in value over time, I believe the most immediate litmus test and evaluation criteria should be the utility of the coin itself. herself out 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 company shares and you would not be buying any company stock.
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. business controlled by the issuing company.
In other words, apart from your hope that the price of the tokens will ‘go to the moon’ or go up to make you a millionaire, there is not much else you can do with the token besides enjoy the utility that the ICO company gives you. , if any
Since no one could predict with certainty how a cryptocurrency would perform on a cryptocurrency exchange when it finally got there, and recent experience has shown that the prices of most tokens would likely plummet 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 might get from your token, beyond the expected ‘struggle’ on the exchange.
As the cryptocurrency revolution continued to accelerate, transform, and adapt to different developments in the market, the only way to make sure your money isn’t thrown away is to make sure you can still use those tokens for great value. and benefits. even if you could sell it for a profit immediately on a trade.
When making this determination, you should ask yourself this primary question: What is the value, product, or service generated by the company selling the token that will give me enough value for my cash to make this purchase worthwhile?
In a world where token prices are plummeting across different exchanges, the more opportunities you have to get real-life utilization with a token off the expected list on the crypto exchange, the better the chances that it won’t. end up frustrated or stranded with chips that don’t serve you.
So you have to ask yourself again and again: IF this coin never traded on an exchange, would you be happy to have supported the vision? If this token lost 70% of its value in an exchange, can I still use it and get value for my 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 purchasing such a 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 buyers of the coin to ensure that whatever happens to Nollycoin on the crypto exchange, its backers and tokens will 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 theaters and movie theaters
• Ability to use Nollycoin tokens to access thousands of movies on your 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 to use Nollycoin tokens to pay school fees on the platform of the NOLLY Academy and associated 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, to the immediate and prospective utility of the token, and the viability of the underlying project behind it. he.