There are all kinds of basement waterproofing paints out there with both pro's and con's.
They look nice. If it is done pretty well, it means that you have cleaned off the wall. Removing the organic material off the wall reduces some of the odor. The basement smell will be reduced. You also reduce the amount of humidity in the basement because this paint blocks some of that moisture in the concrete or block.
This paint is supposed to trap the moisture in the concrete or block which is like putting plastic over the concrete or block so that moisture is an enemy to the foundation and will have a tendency to break it down. It also wants to push out that effervescence or powdery stuff which can push the paint off. It is also costly. And it can actually cause damage over time to the other masonry material that may be on there.
On the occasions when it is a bad idea to use basement waterproofing paint, there are alternatives. We prefer to use a material that goes into the pores of the concrete which grows crystals to stop the water from coming through the foundation walls. We have that material made specifically for us.