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

Is the community the culprit for the fall below the initial coin offering price? Crypto project parties are digging their own graves.

1/ Project party’s tricky operation

The current new projects generally face a common problem: being listed means falling below the initial coin offering price. When Tokens are just listed, there is only selling pressure, but no one is dumb buying.

To avoid this situation, and to make the initial online Token have a better-looking market data, the project party also came up with a series of ‘scheming operations’:

• Before TGE, a large amount of fundraising was done through rat trading;
• Pre-market Airdrops, stake, Lock-up Position;
• Or simply do not distribute Airdrop in a so-called witch’s way.

2/ Community = Buy or Sell

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

So the question is, why did the project party’s hard-built community end up becoming a sell-off instead of a buy-off?

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

3/Assembly Line Community Factory

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

So, the “community” has been quantified into a series of cold numbers, with their pursuit of the number of community members, the pursuit of rapid rise, and the pursuit of today’s community cold start, aiming to reach 500k in a 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 process and tools to help the project party achieve such goals.

Various task platforms similar to Galxe, Tg traffic tools, KOL matrix, etc. Mainly leveraging terms such as ‘zero-threshold participation’, ‘Airdrop for free’, and ‘one fish, multiple meals’ to attract a large number of profit-seeking users, and finally achieve the so-called ‘organic rise’.

However, the result of this approach is also obvious: the community members’ profile has been targeted as a group of ‘fur plucking party’ from the beginning, resulting in attracting a large number of users with the profile of ‘fur plucker’ to form the so-called ‘community’ of the project party.

If the project’s goal is only to quickly list and then exit, then this trap play is no problem, and it can even be said to be very efficient and without any detours.

4/Why is the community selling pressure instead of buying pressure?

Back to the original question: why has the current community become a seller’s market instead of a buyer’s market?

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

The purpose of the project is to find these people to brush their own data. 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, pretending not to understand. The coins that are sent out are essentially debts for the project, which are expenses for providing data to users, not assets.

So when TGE, what else can these Airdrops be besides becoming sell orders?