Is the community the culprit of the coin price falling below the initial coin offering price? Crypto projects are digging their own graves.

Why has the current community become sellers rather than buyers?

Written by BeWater

Is the community the culprit of the project Fall Below Initial Coin Offering Price? Crypto project teams are digging their own graves.

1/ Project Party’s tricky operation

The current new projects generally face a common problem: listing on the exchange and falling below the Initial Coin Offering Price. When tokens are first launched, there is a lot of selling pressure but no one is dumb buying.

To avoid this situation, project party has come up with a series of “scheming operations” to make the Token’s initial market data look better.

• TGE was heavily controlled through rat trading before;
• Pre-market Airdrop stake Lock-up Position;
• Or simply do not distribute Airdrop in a so-called witch’s way.

2/ Community = Buying or Selling

But interestingly, this kind of behavior from the project party subconsciously equates their community with the sell-off of Token, and the community’s Airdrop selling pressure is the main culprit for disappointing price performance.

So here’s the problem, why did the community built by the project party end up being a sell-off instead of a buy-side?

If the community is just selling, why does the project party invest so much effort in building the community?

3/ Pipeline Community Factory

In fact, many project parties do not understand the community, and still don’t understand why they need to build a community. Many times, the project party’s starting point is just to give the exchange an answer sheet, because it is a condition for listing on the exchange, and it is a bargaining chip for listing on a better exchange.

So, ‘community’ has been quantified into a series of cold numbers. They pursue the number of community members, pursue rapid rise, and pursue the cold start of the community today, achieving a target of 500k in one month.

It’s not difficult to create something like this. On the contrary, this is currently the most mature trap GTM strategy in the Crypto market, with a complete chain and tools to help the project party achieve this goal.

Like various task platforms similar to Galxe, Tg traffic tools, KOL matrix, etc. Mainly leverage a large number of users through words such as ‘zero threshold participation’, ‘Airdrop zero brushing’, ‘one fish, multiple meals’, and finally complete the so-called ‘organic rise’.

However, the result of this approach is also obvious: the community members’ profile is targeted to be the ‘fur-lu’ party from the beginning, which ultimately leads to attracting a large number of users with the profile of ‘fur-lu’ to form the so-called ‘community’ of the project party.

If the project’s goal is only to quickly list the coin and then exit, then this trap strategy is without any problem, and it can even be said to be extremely efficient, without any detours.

4/ Why is the community selling instead of buying?

Back to the original question: why has the community become a selling pressure instead of a buying pressure?

The answer is very simple, because from the beginning, the project party’s positioning and GTM strategy for the community has already determined the outcome.

The purpose of the project is to find these people to brush the data for themselves. The initial purpose for community members to participate is to earn Airdrops by contributing data and labor. Both sides understand that the other party has no value, but they both take what they need and pretend to be confused. The coins sent out are essentially debts for the project, expenditures for providing data to users, not assets.

So when TGE, these Airdrop don’t become sell orders, what else can they be?