In a world ruled by hyper and FOMO [Fear Of Missing Out], it is becoming increasingly clear that a diligent crypto enthusiast should have a litmus test to select a support token in a world where it is difficult to find truly viable projects, and good projects with long-term prospects are even harder to distinguish from kidnapping shitcoins.
With recent developments where most new crypto wings reach record lows, and new ICO projects that don’t meet their hype after Crowdsale, it’s now common for frustrated ‘investors’ around to blame ICO promoters on social media, instead of blaming themselves for they did not make an appropriate in-depth analysis to select the most likely winner after the crowdsale before buying the token during the ICO.
From my extensive observation, it turned out that most crypto buyers simply bought coins during the FOMO-based ICO (Fear of Leakage) created by the masters of the hype behind those coins. Many simply bought without understanding the post-ICO purpose of the coin or what the token was supposed to do after Crowdsale. When nothing happened after the ICO, as is often the case with many ICOs, they would then jump on social media to scream a bloody murder.
Recently, my team and I just finished touring Africa and some parts of the US to promote the Nollycoin ICO. We have organized and sponsored various conferences, held live press meetings of the AMA (Ask Me Anything) and held a lot of individual meetings with crypto whales, small investors and crypto millionaires of all colors.
Through it all, one thing that amazed me above all else is that MOST token owners HAD NO FOUNDATION about the core business or project behind the token sale in which they participated.
Even stranger in my observation was the astonishing fact that many could not tell you the value proposition of the project, its goals, or the company’s plan to disrupt the market and attract a portion of customers to their industry. They simply bought the ICO because several telegrams or Facebook pages they visited told them to buy. Hodl and buy more ‘. Most simply acted on the basis of a herd instinct, not on 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. In contrast, many of those I met were college graduates and people who had some resources. Yet less than 10% of them could easily articulate why they bought the coin expecting it to increase in value over time. Wherever I went, very few people in the crowd could tell me the name, experience, and ability 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’ influencers when the facts proved that most of them paid for the horror to create a FOMO and a reputation for otherwise useless shit.
Apart from the so-called fake influencers, all the many crypto buyers knew 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 for a successful ICO was to list the names of people from Korea, China or Russia, which no one could verify even with a simple Google search.
While I agree that there are certainly many things to consider when deciding whether project tokens will increase in value over time, I think the acid test and the most immediate evaluation criteria should be the utility of the coin itself beyond what would happen in crypto exchanges.
Although most crypto token owners I met didn’t even know, the reality is that if you bought the token from most ICOs, you didn’t actually ‘invest’ in that company. You would not buy company shares and you would not buy any insurance from the company.
And at best, what you did when you bought tokens during most ICOs was to ‘donate’ to the project in exchange for getting a utility token or coin that legally had no real value outside the business ecosystem controlled by the publishing company.
That being said, other than your hope that the price of the token will ‘rise’ or rise to become a millionaire, you can’t do much with the token other than enjoy the utility added to it by the ICO company, if anyone.
Since no one could actually predict with certainty how Crypto would work on a crypto exchange when it finally got there, recent experience has shown that most token prices would most likely sink their noses in the first few weeks of going public (due to big speculator sales), there were it would make sense to look at what other value or service you could extract from your token, beyond the expected ‘wandering’ of the stock market.
As the crypto revolution has continued to revolve, change and adapt to different market developments, the only way to ensure that your money is not thrown into the gutter is to make sure you can still use those chips to achieve great value and benefits even if you could sell immediately for profit on the stock market.
In making this decision, you must 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 money to make this purchase worthwhile?
In a world of falling token prices on various exchanges, the more opportunities you have to take advantage of real life with a token beyond the expected inclusion on a crypto exchange, the greater the chances that you would not end up frustrated or stranded by tokens that are useless to you.
So you have to ask over and over again: IF this coin had never been traded on the stock market, would I still be happy to support the vision? If this token has lost 70% of its value on the exchange, can I still use it and get value for my money elsewhere with it?
If you couldn’t answer these questions positively after reviewing WHITEPAPER and investing the company’s claims, you should think twice before buying that coin.
A recent case study
Take the current ICO like Nollycoin, which is a token that runs the Blockchain-enabled movie distribution ecosystem. Coin promoters have created a variety of useful scenarios for coin buyers to ensure that, no matter what happens to Nollycoin on the cryptocurrency exchange, their supporters and tokens still laugh.
Includes some of the great useful tools related to the Nollycoin token in the Nollytainment ecosystem
• Ability to use Nollycoin tokens to watch exclusive movies in theaters 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 Amazon’s platform for entertainment-based products.
• Ability to use Nollycoin tokens to pay tuition fees on the NOLLY Academy platform and partner companies
As you can see, beyond the usual expectation that tokens will be on the crypto exchange list, you need to look beyond the hype ico of the immediate and potential usefulness of the token and the viability of the underlying project behind it.