Why Some Coins Lost Their Value

in LeoFinance3 months ago

As you can see, that there are some coins that drop their price from few USD to only few cents. There are many reasons why some coins loose their value. At the first launch of coins in market, the price is bullish but after few weeks, the price become bearish. That almost takes place to all coins. After few months, there will be stable price. In what level of the stability of the price? That will be problem for investors, coin holders, miners and traders.

HERE ARE SOME REASONS WHY SOME COINS DROP IN PRICE

1. The popularity of the coins dim

The developers halt promotion and campaign after ICO or issuing coins. I am not sure with the kind of developers, they don't even update their social media as the communication channel with the coin holders. That is very poor communication as a start up. I joined a bounty of active start up, https://iex.ec/ It is a blockchain based decentralized cloud computing. The ico was held in 2017. The developers are active in social media. They also active in blockchain seminars and post articles in medium and other publication. After, ICO the price of the token was above the ICO price and seemed to increase. The drop of the price is because of dump of bitcoin from 20,000 USD to 7,000 USD. Now, the progress of the roadmap of iex.ec is executed. The team always update the progress. Promotion, campaign, communication to holders, users, traders and public are very important to keep the coins popularity.

2. The team stop the progress of the development

That is very bad coin. Jse coin is a kind of advertising network with browser mining. The concept is very good but the team stop the progress and the coins become shit and trash coin. Why the coins have no value, it is because the first reasons too. I also install the code of jse coins in my blog. After the team announce that they stop the progress, I was very dissapointed. I think the investors will feel more discomfort with this situation.

3. No expanding market

The team only list the coin or token only in one or limited marketplace. Crowdholding is the example. Yup token is only listed in idex.market . Crowdholding have real community because it is a kind of social media platform. As users, I am dissapointed with crowdholding team because the value of the price decrease constantly. The trading volume is very low. Finally, I left the platfrom because I don't want to spend much time with few cents rewards.

4. Dump and Pump coins

There are many dump and pump coins. The developers only want to take money from fooled traders and investors. They are not responsible about the projects after they get money. They then create new ICO and new tokens to collect money from coin idiots. I will not mention the coins I think you know and you have experience with the kind of developers.

5. Lost in new coins stream

Hundreds of new coins release everyday with their own purpose. The stream will flood the market. Coins with poor popularity and poor team will sink in the stream.

CONCLUSION

Miners, masternodes servers, witness want to make profit from running their servers. They will leave the coins to other coins that is profitable. Coins holders expect the rise of the value from their saving and investors need to make profit from their investments. How about the developers? You can think yourself what kind of developers that you will trust to invest or hold coins or tokens.

Posted Using LeoFinance