Ethereum Might Not Have Bottomed Out Yet, ICO Sell-Off Is The Culprit

September 13, 2018
62 Views


Ethereum seems to be still standing on shaky grounds as the price continues to take a dive. It’s a fact that over the last few months, things haven’t been exactly rosy for this famed base token of the Ethereum project. Investors have had to brave the bear onslaught for months as ETH price took a huge hit in light of various negative news dished out about the cryptocurrency.

ETH At Its Lowest Point

Despite the Ethreum project making huge leaps in the network’s development, the token’s price has continued to be battered by the bearish sentiment. At the moment, Ethereum is trading at way below the $200 mark and at the range of $173, making it the lowest price point for ETH this year.

The sudden fall of such a highly regarded (at least price-wise) cryptocurrency has taken many by surprise, giving rise to various opinions by analysts, investors, and even leaders from various quarters. Everyone seems to have their own theory about what’s really happening to Ethereum. Amid the emotionally-driven noise, there have been a few opinions that have attempted to logically explain the cause of Ethereum’s market woes.

What Experts Say

According to Kevin Rooke, a crypto researcher, ICO’s are the main cause of Ethereum’s price decline. In a tweet, Kevin pointed out that this week alone, ICOs have dumped about $30 million in ETH (153,000 ETH), and that’s way more than it has ever happened in a week since March. Even more disconcerting, and one fact that may be creating some panic, is the realization that ICOs still hold about $600,000,000 in ETH in their accounts. That’s more than 3,000,000 ETH.

That said, the market remains in a state of uncertainty, because if those ICOs decide to continue spending their ETH, the market price will fall to the bears. If they don’t, then there’s a huge chance that the bulls might charge soon and bring the market value back up.

However, not everyone seems to agree with Kevin’s analysis, although it can be generally agreed that the ICO sell-off has had a part to play in ETH’s price melt-down. In Nouriel Roubini’s opinion, the melt-down is happening because about 75% of DApps on Ethereum’s network are basically crypto-kitties, casino games, and Ponzi schemes. The remaining 25% are DEX, and no one uses them.

By that, Nouriel seems to make the inaccurate assumption that DApps are really bad – which is not true. In fact, such apps, casinos, and games can be a sure way to propagate the crypto industry.

 

 

 

 

loading…



Source link

You may be interested

SEC Escalates Measures Against Shady Ethereum ICOs With Pair Of Charges
Ethereum News
9 views
Ethereum News
9 views

SEC Escalates Measures Against Shady Ethereum ICOs With Pair Of Charges

Editor - November 16, 2018

[ad_1] SEC Escalates Measures Against Shady Ethereum ICOs With Pair Of Charges  ForbesFull coverage [ad_2] Source link

Met Police gang database in ‘serious’ breach of data-protection laws, ICO finds
ICO News
12 views
ICO News
12 views

Met Police gang database in ‘serious’ breach of data-protection laws, ICO finds

Editor - November 16, 2018

[ad_1] A database of information on gang activity maintained by London’s Metropolitan Police Service (MPS) “led to multiple and serious…

Coinbase Crypto Company Adds Native-Ripple Coin XRP to Its Custody Service Lineup
Coinbase News
12 views
Coinbase News
12 views

Coinbase Crypto Company Adds Native-Ripple Coin XRP to Its Custody Service Lineup

Editor - November 16, 2018

[ad_1] Coinbase Just Added XRP to Its Custody Service Website Coinbase just added the XRP digital currency to its custody…

Leave a Comment

Your email address will not be published.