Probably because almost every bounty hunter is running to sell tokens and price drops because of that?
I don't see any other reason, I don't think investors will rush to sell tokens ASAP for lower price and lose money.
I feel like there could be many different reasons, some could be
...
Why would someone invest and sell ASAP before project go live? Makes no sense.
- People that did bounty but did not buy the coin may be selling theirs so anything sold is profitThis is also my opinion.
- Many ico have bonuses, say 40% bonus, so if they coin drops 30% and they sell, they still made profitI never looked at it like that because some tokens fall more than 10X under ICO price so even with 40% bonus it is still lose.
- Panic sellingI don't understand why. If you invest it is for long term and because you believe in project, so why would anyone panic before project is even released?
- People selling with the purpose of rebuying when its lower. Enough ppl sell their coins, it creates panic, and then you can rebuy at lower price. As long as you sell first, then you can take advantage of the panic sellers. ppl with trading bots could probably take advantage of this.It is very risky but ok, this could be another reason.
- Bad news came about about the company after the ICO that caused ppl to loose their confidence in them. Maybe least likely to happen?Most likely I would say, no response from dev's team, people invested in scam and realized it etc.