ICO Influencer: Self fulfilling prophecy?

Hype about ICOs has attracted many influencers and ICO analysis has long been a topic on platforms like YouTube, where influencers make recommendations about projects. Is this assessment to be trusted?

Those who do not pay close attention to ICOs have a hard time keeping an overview of the market. The huge amount of new projects ensuring their financing through token sales continues to grow. It is therefore all the more important in the long term to separate the wheat from the chaff. Then there are creators who analyze ICOs according to certain schemes. They want to enable investors to quickly assess a project based on a few key figures.

How influential are influencers?

On the other hand, one should be critical of influencers, as they can effectively trigger a market movement based solely on a person’s assessment. Depending on the popularity of the influencer, it may happen that his or her assessment determines the success or failure of the funding.

This creates a self-fulfilling prophecy: if a well-known influencer proposes a project as profitable, many investors may follow him and support the project – which will make the funding a success (at least in the short term). A self-fulfilling prophecy that always confirms what the influencer purported to foresee.

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There has also been criticism among investors in the recent past of well-known founders of the IT industry. These had left on Twitter very positive-sounding statements on projects, which subsequently increased sharply. Only because of its role as an influencer, as is to be expected. Of course, this can be exploited by pushing projects. Finally, investors have the opportunity to join the ICO and then provide media coverage to drive the course higher.

How should I understand ICO influencers?

The decisions of influencers should always be analytically understandable. This means that the evaluator has analyzed the project in detail – as can be understood, for example, through analysis sheets. On the other hand, it is quite possible that an influencer will accelerate the project for marketing purposes only. This can well lead to a self-fulfilling prophecy. Nevertheless, influencers are of course an advertising tool that – as in classical applications – does not require to be convinced of the product itself (eg TV advertising). However, one should not forget that these assessments are not always fact-driven. It may therefore be quite possible that the project quickly gains in value in the short term due to the thrust of an influencer or it attracts more users through the marketing provided.

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