With the burgeoning of the ICO sector, a lucrative business of monitoring and reviewing the latest projects has been spawned. The websites that are conducting reviews are not only earning huge sums of money for the reviews they feature but some of them have become so powerful that they possess the ability to break or make initial coin offerings.
A year ago these ICO trackers were not in existence. But due to the huge number of initial coin offerings it has become impossible for any one individual to review them all by themselves since the crowdsales are too many. The review sites thus do the donkey work for those wishing to purchase ICO tokens and are thus put in a position where they can make a wise decision and avoid losing their money.
Five years ago when Coinmarketcap (CMC) was founded it engaged in the tracking of virtual currencies. The job then was easy as there were just a few altcoins at the time. As the digital coins grew in number the role of Coinmarketcap also got bigger. Now new initial coin offerings took getting listed on Coinmarketcap as mandatory as they planned their token sales. This is happening with initial coin offerings ratings website too as their logos now appear on most websites of crowdsales.
It is true that the services the ratings sites are offering are valuable as this arms investors with the information required before putting their money into a project. Some of these rating sites include Tokendata, Coin Magnet, Coinschedule and ICO Formula all of which offer various tools which are used in the assessment of crowdsales based on location, sale type, blockchain, sector and various other metrics.
Paid listings and free listings
Another ratings site is ICOclock which basically lists initial coin offerings in a single column with information on the ones that are ending and so on. Some of the ratings site are also offering to review and list initial coin offerings at no cost and this includes ICO Drops. There are others which provide free listings or offer a featured review at a cost. This includes ICObench.
Additionally there are ICO trackers which conduct due diligence on the operators of initial coin offerings and this includes perusing through passports and other forms of documentation in order to make sure that the operators are who they say they are. Such a service is considered important as investors will have more confidence putting their money in a project.
However there are instances where trackers have given positive reviews to an ICO only for it to turn out to be a scam. Earlier in the year this was the case with Benebit which made off with funds amounting to $2.7 million. This forced the ICO ratings sites to take down the positive reviews they had given the project and claimed they had been duped.
What this means is that even as investors flock to ICO ratings websites they still have to conduct their own research such as reading the white papers as well as looking through the online profiles of the operators. This will be time well spent considering that the opposite means losing their hard-earned money.
Dippli is an independent media outlet that covers the current events in the crypto space. Got breaking news or a story to share? Then feel free to contact us at email@example.com.