OKOIN: Sell or Not to Sell Tokens After Entering the Exchange?
Before talking about profitability, we will give an insight of a scientific part. Liquidity is determined by the ability of the market to sell or buy an asset at a price close to the market price.
At the same time, the faster the transactions with assets are, the more accurately their market valuation is, and as a result, the asset is more stable in the long term, but more volatile in the short term.
In other words, as soon as the token enters the open exchange, many people will want to sell it to earn in the short term. As a result, the price will decrease. Then long-term mechanisms will get into the game, and here it is the very moment when you can earn much more than when the token enters the exchange.
The main advantage of the OKOIN token is liquidity. First of all, it is due to the constant needs of the users of the VR OKO platform, the VR Casino OKO platform and other Internet services of a similar focus (websites and stores of VR Technology partners) that uses the OKO Pay payment system.
Many holders of OKOIN (as holders of Ethereum, Bitcoin, Litecoin, Monero ….) want to predict the market movement to sell high and buy low. That does not differ much from the basic stock market principles.
If you bought OKOIN in the early stages to get high returns in the future (and not for its intended use), then your bet was to increase your investments when the token enters the exchange. But, it is important to bear in mind that such a desire goes hand in hand with high losses from unrealized opportunities in the near future, when the token begins to grow naturally, thanks to its liquidity and real demand.
Let’s look at the most bright example from the past. Suppose you discovered Bitcoin in 2010 and invested in it at a price of $0.10 per coin.
Looking now at the past events, it’s easy to think that you would most likely have decided to keep your cryptocurrency up to 2017 till the price of $ 20,000. However, being realistic this was unlikely to happen.
For example, if you invested $100, now you would have 1000 bitcoins worth $20 million. It’s in theory. However, if you look at things realistically, you have to admit that as soon as the investments increase by 10 or 100 times, the desire to exit is ENORMOUS.
$10,000 is a new car, and $100,000 is already a small house. That is why there are so few crypto billionaires on the market today and a lot of “pizza for 10,000 Bitcoins.”
Comparison with venture capital
When working with traditional venture capital, this problem is rare – investors do not have many opportunities to sell, so they hold and wait for the optimal moment.
That’s how Peter Thiel became a billionaire: he invested in Facebook and was waiting for the company to enter the IPO to make a profit. In the blockchain it happens extremely rarely.
In any case, OKOIN is in demand, because many goods and services are tied to these tokens. But, it is necessary to recognize that if after entering the exchange everyone starts to sell it massively, the price in the first weeks will begin to decrease. In the end, laws of the market are still in force. The reverse is also true: if the tokens holders decide to keep them, OKOIN will quickly grow and be able to ensure a much bigger profit.
The OKOIN project is no exception, when the long-term stability of the whole crypto market is impossible and this volatile market decides what companies will survive and what will not. Rome was not built in a day. The pursuit of immediate profit of some OKOIN holders may not affect the coin rate in the best way when it is listed on exchanges. However, the market will set things straight.
A few words from founders of the project
The main question that we’ve been asked: “Aren’t you afraid that as soon as OKOIN enters the exchange, it will be quickly sold, and it will collapse?”. Honestly speaking, we are not afraid. Although we understand that it is possible.
The thing is that OKOIN is just a tool for achieving much more significant goals and projects. At worst, yes, it can be devaluated in the short term. But people and companies will continue to use our developments and products. Private users will continue to buy movies and gamble, companies will connect OKO Pay and offer payments in OKOIN. This means that it is only a matter of time when the token grows again. This time with a significant difference: speculators won’t have cheap tokens any more, and only the market will regulate the situation that plays into the hand of a the token.
As for the VR technology team … In any case, we will continue to develop and implement blockchain innovations in those markets for which OKOIN is thought. We will not work with figures for speculators, using traditional methods for this. There is so much money in pump and dump schemes and fake projects that the whole industry looks like just a quick way to earn easy money.
ICO for our project is just the beginning. There is a long and hard way ahead, and inevitable success in the medium and long-term. It sounds very presumptuous, but we would not be so categorical if our partners and clients did not believe in us.
It’s impossible to predict the future, but you can be sure that there is a relationship between liquidity and long-term growth, the benefits of which many cryptocurrency market players can not yet appreciate.
When “investors” get a double profit and exit the project, once the ICO end, it is a problem. We will do our best to prevent such a situation with OKOIN. We hope that our community is interested in the development of the project, like us, and together we can give a balanced answer to this question.
And, moreover, only 35% of tokens are issued, we also have a stabilization fund. So, there is a high probability that everything will be fine.
Thank you for supporting us and sharing our values!
The VR Technology team.