So it seems a lot of ICO's are running with $1 per coin during the ICO - but then dropping well below that price once they're listed on an exchange.
Is this a normal thing for an ICO at least initially while they're working on getting their project fully operational?
Are they setting the $1-$2 a coin so they can make sure they're fully funded to get the project started and on it's way vs trying to sell shares for pennies or dimes?
But why wouldn't the price of an ICO hold at what that price was? Just because initial founders are dumping their coins to get some cash out and forcing the hand/price to go down based on supply & demand?
I haven't tried participating in ICO's yet but I am a bit exposed since a friend recently participated on Electroneum's ICO which got a problem on their security after the ICO so all has been locked down and they weren't able to access their tokens. After the issues were solve and the website was launched again a lot of investors withdrawn their token that caused the price to go down. Can't really blame the investors as their trust for the company was tainted.
Anyway, yes. It is really normal for ICO's to drop price because some investors prefers to profit in an instant rather than hold so most often they dump these tokens when it's available to trade in exchangers.