In a world driven by hype and FOMO [Fear Of Missing Out], it is becoming increasingly clear that the diligent cryptocurrency must go through the litmus test of choosing a token to support in a world where real viable projects are hard to find, and good long-term projects are even harder to distinguish from money-grabbing.
With recent developments, when most new cryptocurrencies reach record lows and new ICO projects that don’t match their post-Crowdsale hype, now frustrated “investors” tend to bypass the fault of ICO promoters on social media rather than blaming themselves for not did a proper check to select the most likely winner after the crowdsale before purchasing the token during the ICO.
From my extensive observation, it became clear that most crypto buyers simply bought coins during the ICO based on FOMO (Fear of the Abyss), created by the masters of hype behind these coins. Many just bought without understanding the purpose of the coin after the ICO and what the token had to do after the crowdsale. If nothing happens after the ICO, as is often the case with many ICOs, they then jump on social media and shout about the bloody murder.
Recently, me and my team just finished a tour of Africa and parts of the US to promote ICO Nollycoin. We have organized and sponsored various conferences, held live press meetings of the AMA (Ask Me Anything) and held many one-on-one meetings with crypto-whales, small investors and crypto-millionaires of any color.
On the contrary, I was struck by, among other things, that MOST token holders DID NOT MEAN about the core business or project behind the sales of the tokens in which they participated.
Even more astonishing in my observation was the astonishing fact that many could not tell you the valuable proposal of the project, its goals or the company’s plan to disrupt the market and capture many buyers in its field. They just bought the ICO because a few telegrams or Facebook pages they visited kept telling them, “Buy Hodle and buy more.” Most simply acted on the basis of herd instinct rather than objective discussion.
Now that most of the people I’ve met have been just teenagers or uneducated people, I wouldn’t be so surprised by the level of ignorance of many crypto-investors I’ve met. On the contrary, many of those I met were college graduates and people with a certain affluence. However, less than 10% of them could easily articulate why they bought the coin, hoping that it would increase in value over time. Wherever I went, few in the crowd could tell me the name, experience, and capabilities of the corporate managers of a company that sells coins.
Most could only point out that the coins were recommended by “respected” influential people when the facts prove that most of them were getting chills to create FOMO and respectability for otherwise useless shitcoins.
Apart from the so-called false influencers, all the many buyers of the crypt knew that the names of the team leaders were Russian, Chinese or Korean, although they knew absolutely nothing about them. As if all you need for a successful ICO is to list the names of people from Korea, China, or Russia that no one could even verify with a simple Google search.
While I agree, there are definitely many things to consider when deciding whether to increase project tokens over time, I think the acid test and the most immediate evaluation criteria should be the utility of the coin itself outside of what happens on the crypto -exchanges.
Although most crypto token owners I’ve met didn’t even know about it, the reality is that if you bought a token from most ICOs, you didn’t actually “invest” in that company. You would not buy company shares and would not buy any securities in the company.
And at best, what you did when buying tokens during most ICOs was a “donation” to the project in exchange for a utility token or coin that legally had no real value other than a business ecosystem controlled by the issuing company.
In other words, other than your hope that the price of the tokens will become “monthly” or rise to make you a millionaire, you can’t do much else with the token other than enjoy the utility attached to it by ICO, if any.
Because no one could really predict exactly how Crypto would act on a crypto exchange when it finally got there, and recent experience has shown that the prices of most tokens are likely to drop in the nose in the first few weeks after going public (due to big speculator sales), it would be clear to you to see what other value or utility you could get from your token other than the expected “feast” on the exchange.
As the crypto-revolution has continued to change, change and adapt to different market developments, the only way to make sure your money doesn’t fall into the gutter is to be sure that you can still use these tokens to get great value and benefit even if you could sell it for a profit right on the stock exchange.
When making this decision you should ask yourself this basic question: what is the price, product, or service created by the company that sells the token that will give me enough value for my cash to make that purchase of mine?
In a world of falling token prices on different exchanges, the more opportunities you have for real use using a token outside the expected list on a crypto exchange, the more likely you are that you will not end up spoiled or blocked tokens that are useless to you.
So you have to ask over and over again: IF this coin was never traded on an exchange, would I still be glad to have supported that vision? If this ticket has lost 70% of its value on the exchange, can I still use it and get the price from it elsewhere?
If you have not been able to answer these questions in the affirmative after viewing the WHITEPAPER and filing the company’s claims, you should think twice before buying this coin.
A recent case study
Take the current ICO, such as Nollycoin, which is a marker that feeds the Blockchain-supported movie distribution ecosystem. Coin promoters have created various utility scenarios for coin buyers to ensure that no matter what happens to Nollycoin on the cryptocurrency exchange, their fans and hockey players will continue to smile.
Include some great useful features that attach to the Nollycoin token in the Nollytainment ecosystem
• Ability to use Nollycoin tokens to watch exclusive movies in cinemas and cinemas
• Ability to use Nollycoin tokens to access thousands of movies in their distribution of Netflix movies on steroids.
• Ability to use Nollycoin tokens to purchase products and services at NollyMall, which is similar to 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, apart from the usual expectation that tokens can be listed on a crypto-exchange platform, you need to look beyond the hype ico of the immediate and promising usefulness of the token and the viability of the main project behind it.