We always see the price rise for a short period after the listing in the exchanges or after IEO, but soon price be come down,
this may due to two reasons:
The first reason is that the coin or token has no real value.
The second reason is the large sale of those who got his coin free such as airdrop.
Isn't that true?
the both reasons is true. but the greatest reason who really make price down so fast that number two is many bounty hunters sell their coins after launched on the market, bounty hunters sell their coins as quickly as possible because ussually after coins launched the price of coins very high and make seller get big profit if they are selling coins as quickly as possible than hold for longer
I have seen many times the coin was listed on exchange and its price dropped, and the bounty hunters have not yet received their rewards. Often, developers give tokens to partners, for example, ICOrating websites without being blocked for a certain period of time. Not only bounty hunters are the reason for the drop in price, but all who get tokens for free like in airdrop, or for services like partners.
it happen in some coins of ico not all ico project. in above i said that the both reasons is true but the greatest reason is number two. in this case maybe because reason number one the coins or token has no real value and make token price dropped before the coins distributed to bounty hunters or the bounty hunters not sell their coins yet