In a world driven by hype and FOMO [Fear Of Missing Out]It is becoming increasingly clear that a diligent crypto enthusiast must have a litmus test to choose a token to support in a world where it is difficult to find real viable projects, and good projects with long-term prospects are even harder to distinguish from seizures.
Due to recent developments, when most new cryptocurrencies are reaching record lows and new ICO projects are not keeping up with their hype after Crowdsale, now often frustrated “investors” blame ICO promoters on social media rather than blame. for failing to conduct a proper check to select the most likely winner after a crowdsale before purchasing a token during his ICO.
From my extensive observations, it turned out that most crypto buyers simply bought coins during the FOMO-based ICO (Fear of Missing), created by the masters of the hype behind these coins. Many just 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 is often the case for many ICOs, they jumped on social media to shout about the bloody murder.
Recently, my team and I just finished a tour of Africa and parts of the US to promote the Nollycoin ICO. We have organized and sponsored various conferences, held live AMA (Ask Me Anything) press meetings, and held numerous one-on-one meetings with crypto-whales, small investors, and crypto-millionaires of all colors.
With all of this, one thing that surprised me the most was that MOST token holders DIDN’T KNOW about the core business or project behind selling the tokens they were involved in.
Even more surprising to my observations was the amazing fact that many failed to tell you the value of the project, its goals or the company’s plan to thwart the market and capture some buyers in its industry. They just bought the ICO because a few pages in telegrams or Facebook that they visited kept telling them “Buy”. Go and buy more. ” Most simply acted on the basis of herd instinct rather than objective reasoning.
Now, if most of the people I met were just teenagers or uneducated people, I wouldn’t be so surprised by the level of ignorance of many crypto “investors” I met. On the contrary, many of those I met were college graduates and people with some affluence. However, less than 10% of them could easily articulate why they bought the coin, hoping that its value would increase 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.
The only thing most of them could point out was that the coins were recommended by “respected” influential people when the facts proved that most of them were paid with a shiver to create FOMO and respectability for otherwise useless shitcoins.
Apart from the so-called fictitious influential people, many crypto buyers only 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 can verify with a simple Google search.
While I agree that of course you need to consider a lot of things that decide whether project tokens will increase in value over time, I think the acid test and the most immediate evaluation criterion should be the usefulness of the coins beyond what happens on cryptocurrencies.
Although most of the crypto token owners I’ve met didn’t even know about it, the reality is that if you bought a token at most ICOs, you didn’t “invest” in that company. You wouldn’t buy company stock, and you wouldn’t buy any securities from the company.
And at best, what you did when you bought tokens during most of the ICOs was a “donation” of the project in exchange for getting a useful token or coin that legally had no real value outside the company-controlled business ecosystem. issuers.
In short, other than your hope that the price of tokens will “month” or rise to make you a millionaire, you could do nothing with the token other than use the utility attached to it by ICO, if any.
Because no one could predict exactly how Crypto would work on the cryptocurrency exchange when it finally got there, recent experience has shown that prices for most tokens are likely to jump in the first few weeks after going public (with -for big sales by speculators), it would make sense to look at what other value or utility you could get from your token other than the expected “occupation” on the exchange.
As the cryptorevolution has continued to evolve, transform and adapt to different market developments, the only way to ensure that your money is not thrown away is to be sure that you can still use these tokens to get great value and benefits. even if you could immediately sell it with a profit on the stock exchange.
In accepting this definition, you need to ask yourself the following main question: What is the value, product, or service generated by the company that sells the token that will give me enough value for my money to make this purchase worth my time?
In a world of falling token prices on various exchanges, the more opportunities you have to actually use the token outside of the expected cryptocurrency listing, the more likely you are not to be disappointed and not be able to use the tokens useless to you.
So you have to ask over and over again: IF this coin had never been traded on an exchange, would I have been happy to have supported the vision? If this token has lost 70% of its exchange value, can I still use it and get an account for my money elsewhere?
If you have not been able to answer these questions in the affirmative after reviewing the DOCUMENT and filing the company’s claims, then you should think twice before buying this coin.
The last example
Take the current ICO, such as Nollycoin, which is a token that provides a 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 token holders will smile.
Some of the great benefits 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 1,000 movies on their Netflix-on-steroids blockchain Movie Distribution.
• Ability to use Nollycoin tokens to purchase products and services at NollyMall, which is similar to Amazon’s entertainment platform.
• Ability to use Nollycoin tokens to pay school fees on the NOLLY Academy platform and in partner companies
As you can see, in addition to the usual expectation that tokens can be presented on the crypto exchange platform, you need to look beyond the ico hype for the immediate and long-term usefulness of the token and the viability of the underlying project behind it.