What to consider before investing in ICOs

According to Coinist.io, the average return on investment or ROI of ICOs in their directory is 5374.62 percent. As ICOs first gained popularity and took hold, early investors saw outrageous gains and many became very wealthy. However, as more and more ICOs flood the market these huge early investor returns will become more rare harder to find.

Finding reliable sources of information is the first and perhaps most important step an investor can take. The cryptocurrency space has often called out for its campaigns of misinformation and propagation of FUD, an acronym for “Fear, Uncertainty and Doubt” or FOMO, which stands for “Fear of Missing Out.” Blockchain startups issuing ICOs often deploy these tactics to garner attention and create “pump and dump” situations. Many of these companies are knowingly putting out shoddy products and shilling they for quick profits. Unfortunately, hundreds and even thousands of investors are left with coins with little or no value.

Some countries have cracked down completely on ICOs, locking out virtuous and innovative companies. The crackdown has caused ICOs to flock to countries with less regulation which further clouds the ICO sector, leaving investors not sure which companies are frauds and which are working on groundbreaking applications.

When thinking about jumping in on an ICO that seems promising, investors should pay close attention to the team that is building the platform. Follow the links and check up on the developers and officers. Obviously some great things have been done in this sector by unknowns, but a team filled with people who have had success building companies outside the cryptosphere mixed with notable blockchain veterans is a good sign for these organizations.

While many crypto startups will fail along with their ICOs, the true gems will bring something to the table that makes life easier or businesses run in a smoother more efficient way. Exchanges offering ICOs can be great places to find lucrative investments. The number of failed or dead ICOs will continue to rise, but exchanges will always have a place in the cryptocurrency world. The surviving projects and their respective coins and tokens will always need a place to be bought and traded, and a token such as Bithemoth’s BHM will provide savings for traders and keep demand high as long as people continue to trade various cryptocurrencies.