Not always, as most altcoins today only fare into dumps. The benchmark i invest in altcoin is that have good reputable developers or atleast have a roadmap and reliable reference.
The BEST WAY TO DETERMINE THAT IS IF THEY ALREADY HAVE SOFTWARE THAT YOU CAN USE. Everything else is vapor-ware.
The roadmaps and references are useless. They give you a false sense of security.
There have been several projects with large teams, reliable references and roadmaps. After raising multiple millions, they still haven't released any software.
EOS bragged that they have 50 developers. Who knows if that is true. They raised $230 million and said that they were going to release something by end of summer. Nothing yet. With $230 million, they should've solved world hunger by now.
Gnosis raised $12.5 million and their website says that they are releasing their game by first half of 2017. Nothing yet.
Qtum raised $15.6 million. I don't see anything produced on Qtum's website.
After raising $50 million, Cosmos's website is still pitching its white paper. Come on. What have they produced with that $50 million?
MobileGo raised $53 million. Here's the roadmap from their white paper:
May - June: Gamecredits Mobile Store Public Launch
May - June: Gamecredits accepted for mobile store games and in- game content purchases
July - August: first centralized tournaments on platform
However, I don't see any of that on their website. They're mainly bragging about how their token is on exchanges. What are they doing? Day-trading their own token? Roadmap is useless.