In a world ruled by super and FOMO [Fear Of Missing Out], it is becoming increasingly clear that the diligent crypto enthusiast must have a litmus test to choose a token to support in a world where it is difficult to find truly viable projects, and good projects with long-term prospects are even more difficult to differentiating from money grabbing “shitcoins”.
With recent events where most new cryptocurrencies are reaching record levels and new ICO projects not meeting their hype after Crowdsale, it is now common for frustrated “investors” to go around blaming ICO social media promoters instead of blaming themselves. that they did not make the proper due diligence to select the most likely winner after the crowdsale before purchasing a token during the ICO.
From my extensive observation, it turned out that most crypto buyers simply buy coins during the FOMO-based ICO (Fear of Leakage), created by the masters of the fuss behind these coins. Many simply bought without understanding the purpose of the coin after the ICO or what the token had to do after Crowdsale. When nothing happened after the ICO, as often happens now for many ICOs, they would jump on social media to scream a bloody murder.
Recently, my team and I just completed a tour of Africa and parts of the United States to promote the Nollycoin ICO. We organized and sponsored various conferences, held press meetings of AMA (Ask Me Anything) and held many individual meetings with crypto whales, small investors and crypto millionaires of all colors.
Through it all, one thing that amazed me beyond anything else was that MANY token holders DIDN’T HAVE A DISK for the core business or project behind the token sales they were involved in.
Even stranger than my observation was the astonishing fact that many could not tell you the value of the project, its goals or the company’s plan to distort the market and grab some buyers in their industry. They just bought the ICO because a few telegrams or Facebook pages they visited kept telling them, “Buy. Hodl and buy more. “Most simply acted on the herd’s instincts, not on objective discussion.
Now, if most of the people I met were just teenagers or uneducated, I wouldn’t be so surprised by the level of ignorance of many of the crypto “investors” I met. On the contrary, many of those I met had graduated from college and people by some means. Yet less than 10% of them could easily articulate why they bought a coin in anticipation that it would grow over time. Wherever I went, very few in the crowd could tell me the name, experience, and capabilities of the corporate managers of the company that sold the coins.
The only thing most of them might note is that the coins are recommended by “respected” influential people when the facts prove that most of them received a frightening thrill to create a FOMO and respect for otherwise useless shitcoins.
Apart from the so-called fake influencers, all many crypto buyers knew that the names of the team leaders were Russian, Chinese or Korean, although they knew absolutely nothing about them. As if all you needed to have a successful ICO was to list the names of people from Korea, China, or Russia that no one could even check with a simple Google search.
While I agree that there are certainly many things to consider when deciding whether a project’s tokens will increase over time, I think the acid test and the most immediate evaluation criteria should be the usefulness of the coin itself beyond what would happen in crypto exchanges.
Although most crypto token owners I’ve met didn’t even know it, the reality is that if you bought a token from most ICOs, you didn’t actually invest in that company. You will not buy shares in the company and have not purchased any collateral from the company.
And at best, what you did when you bought tokens during most ICOs was “donate” a project in exchange for a token or utility coin that legally had no real value outside the issuing company’s controlled business ecosystem. .
In other words, except for your hope that the price of the tokens will “lunar” or rise to make you a millionaire, you can’t do much with the token other than enjoy the utility attached to it by the company ICO, If anyone.
Because no one could really predict with certainty how Crypto would perform on the crypto exchange when it finally got there, and recent experience shows that the prices of most tokens are likely to dive in the first few weeks of hitting the stock market (due to big sell-offs from speculators), it would make some sense to look at what other value or utility you could derive from your token, beyond the expected “luning” of the stock market.
As the crypto revolution continues to evolve, transform and adapt to different market developments, the only way to ensure that your money is not thrown into the ditch is to make sure you can still use these tokens to get excellent value and benefits even if you can sell it for a profit right on the exchange.
In making this determination, you need to ask yourself this basic question: What is the value, product, or service that the token company generates that will give me enough value for my money to make this purchase cost me?
In a world of token price crashes on various exchanges, the more opportunities you have to extract real life with a token outside the expected listing on the crypto exchange, the greater the chances that you will not be disappointed or blocked tokens that are useless to you. .
So, you have to ask again and again: IF this coin was never traded on the stock exchange, would I still be happy to support the vision? If this token loses 70% of its value on the stock exchange, can I still use it and get value for my money elsewhere with it?
If you could not answer these questions in the affirmative after reviewing WHITEPAPER and investing the company’s claims, then you should think twice before buying this coin.
A recent case
Take the current ICO as Nollycoin, which is the symbol that drives the Blockchain-activated 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 supporters and hackers will continue to smile.
Includes some of the great benefits attached 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 Netflix-on-steroids blockchain Movie distribution.
• Ability to use Nollycoin tokens to purchase products and services at NollyMall, which is Amazon’s platform for entertainment-based products.
• Ability to use Nollycoin tokens to pay tuition fees in the NOLLY Academy platform and partner companies
As you can see, beyond the normal expectation that tokens can be listed on a cryptocurrency platform, you need to look beyond the ico’s hip to the immediate and promising usefulness of the token and the viability of the underlying project behind it.