March 22, 2018, 4:23 p.m. Tags: blog
Projects run the risk of finding initial success, expanding rapidly sometimes for a year or more, only to fail from mismanagement or shifting market sentiment. These companies often find themselves with a null use case – and a price that’s dropping faster than market interest in their product! The only thing worse than being average is being boring in a market as fast-paced as crypto.
Only pumpers who are willing to take the risk for a quick profit will jump on a sinking ship; they just want to load it up with TNT and blow a chunk of it sky high before the sinking hull fertilizes a new reef.
A good example of such a phenomenon is a project that had quite the buzz surrounding it back in late 2014 called Paycoin. It was the dream of many investors – a guaranteed price floor which would protect you from incurring too many losses with all coins re-bought at a guaranteed price of ten dollars! The project was holding steady for the first month and even appreciated around 60% from its ICO price.
Unsurprisingly, due to a conceptual error Paycoin crashed and burned hard as the price was manipulated by intelligent traders for a hefty profit. It was defended quite rigorously on the forums and social media as a minor setback, but fanaticism can’t save flawed fundamentals.
Nowadays where does it rest? You’ve never heard of it for a reason – this is just one of many projects that serve as a testament to flawed fundamentals. There is no doubt that there will be many similar stories in the future.