Remember that cryptocurrencies have intrinsic properties that are quite phenomenal, which will include their hype, volatility, illiquidity, and they are highly unregulated at the moment – which doesn’t sit well with the traditional venture capitalist or you’re regular over the counter grandad investor. Furthermore, these qualities play a major role in the mainstream adoption of ICOs.

Howbeit, initial coin offerings are no different from these cryptocurrencies, as numerous as they are, they have quite the consumer base; the hurdles notwithstanding, the crave for the profit driving frenzy, is all the more reason why quality and timely information about the price index, innovations, adoptions, milestones, challenges, and transformations are best friends to crypto traders, investors and enthusiasts.

One of the most influential techniques used in the market system that has a psychological play on investors is the issue of FOMO (fear of missing out) and FUD (fear, uncertainty, and doubt). These are terms associated with the reactions of subscribers with their choice token or coin. FOMO happens when people think they will miss out because of a current mooning cryptocurrency or prospective ICO that has a unique roadmap and are currently doing well in the token crowdsale, which results in ‘binge-buying’ of the token or crypto which could have consequences that are unpalatable. On the other hand, FUD can steer things in the opposite direction, especially when a token sale started well and some negative comment or ICO related news, which is unfavorable to the project becomes a deterrent to investors.

There is also the issue of ‘pump’ and ‘dump’. A pump has become a systemic technique in manipulating market variations; which happens when token investors would consider buying a large amount of a token during the crowd sales. This can be likened to the pump stages of cryptocurrencies, where crypto backers will drive up the price of a particular coin by hyping its worth and also buying at the same time. However, in the case of ICO, they basically take advantage of the bonus stage incentives attached, a single individual can buy large amounts of the tokens which accounts for an up value in their total token worth.

Once the token hits the exchange and these early investors decide to dump and at relatively low prices and that affects the overall price index and worth of the ICO project. Similar occurrences are observed in crypto volatility, the summary of the volatility of most cryptocurrencies are in response to either new product design, upgrade in platform instructiveness, or migrating between / developing independent blockchain network, or a new reputable backer in their project. All these are singular factors that determine the fate of any startup.