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 of the project? Crypto project teams are digging their own graves.

1/ project party's slick operation

Nowadays, new projects generally face a common problem: falling below the initial coin offering price after listing. When tokens are just launched, there is a lot of selling pressure, but no one is dumb buying.

To avoid this situation, the project party has also come up with a series of "scheming operations" to make the market data look better in the early stage of Token listing:

Before TGE, a large amount of control and planning was carried out through rat trading;

Pre-market AirdropstakeLock-up Position；

Or directly don't Airdrop through the so-called witch's way.

2/Community=buying or selling

But interestingly, this behavior of the project party subconsciously equates their community with the selling pressure of the token. 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 still haven't figured out why they need to Build the community. Many times, the project party's starting point is just to answer questions for the exchange, as it is a condition for listing on the exchange, and is a bargaining chip for listing on better exchanges.

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.

Making something like this is not difficult. On the contrary, this is currently the most mature trap GTM strategy in the Crypto market, with a complete chain and tools that can help the project party achieve such goals.

Various task platforms similar to Galxe, Tg traffic tools, KOL matrix, etc. Mainly leverage a large number of users through 'zero-threshold participation,' 'Airdrop zero lashing,' and 'eating multiple fish' to achieve the so-called 'organic rise' in the end.

However, the result of this approach is also obvious: the community members' profile was targeted as furries from the beginning, resulting in attracting a large number of users with the profile of "furries" 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 instead of buying?

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 provide data for themselves. The initial purpose for community members to participate was to earn Airdrops by contributing data and labor. Both parties understand that the other has no value, but they both take what they need and pretend not to understand. The coins distributed are essentially debts to the project, representing the expenditure for users providing data, rather than assets.

So when TGE, what can these Airdrops become other than sell-offs?