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How does the AUM of a cryptocurrency project affect its credibility and investor confidence?

avatarRinka_58Dec 27, 2021 · 3 years ago1 answers

Can you explain how the AUM (Assets Under Management) of a cryptocurrency project impacts its credibility and influences investor confidence? What are the key factors that investors consider when evaluating a project's AUM?

How does the AUM of a cryptocurrency project affect its credibility and investor confidence?

1 answers

  • avatarDec 27, 2021 · 3 years ago
    At BYDFi, we believe that the AUM of a cryptocurrency project is a crucial factor in determining its credibility and investor confidence. A high AUM indicates that the project has garnered significant interest and support from the community, which can enhance its reputation and trustworthiness. Investors often look for projects with a substantial AUM as it demonstrates that the project has already gained traction and has the potential for future growth. However, it's important to note that AUM should not be the sole factor in evaluating a project's credibility. Investors should also consider other aspects such as the project's team, technology, and market potential to make informed investment decisions.