Ethereum valued at $30 million has been offloaded in the last couple of days by ICOs
From the start of 2018 and the past year, ICOs markets’ have been flourishing. Due to their bang in the marketplace, Initial Coin Offerings have received ton of interest from big market players and coverage by mainstream media. This has resulted in increased interest and valuation of related technologies and cryptocurrencies such as the Ethereum.
Several of the projects were built on top of Ethereum’s smart contract technology. Projects like Tron (TRX) and EOS which were under the second largest cryptocoin, Ethereum, have become so successful that they are now aiming to surpass Ethereum by launching their own Mainnet.
However, the same factors that made Ethereum enjoy golden days as first sale of stock enjoyed success in the market have had an serious effects on ETH. Since it was the cryptocurrency platform most developers choose for the projects and were a first mover in the ICO space, the bear market has had ripple effects on other cryptocurrencies and Ethereum in particular.
This has culminated in what is being termed as the most shocking result in the cryptocurrencies market this year, the falling of Ethereum prices below $200 after experiencing a constant decline in valuation. The constant decline has been attributed to the bear conditions being experienced by ICOs.
According to analysis and reports, amid the golden times of ICOs, the ventures collected millions of tokens and drew great investor and media interest, leading to a bubble in the industry.
As the ventures failed and the ICO markets faced bearish conditions, this had a knock-on effect of the price of Ethereum and other cryptos. The decline being experienced in ICOs market has been attributed as the cause for the decline affecting several cryptocurrencies, one of the most affected being Ethereum.
Further compounding the situation is the sale of ETH valued at $30 million in the last week, as remarked by Kevin Rooke on Twitter.
He pointed out that ICOs, who hold more than $600 million worth of ETH in their wallets sold more than $30 million worth of ETH and it is not know whether they will hold them or sell them.
Market outlook is still gloomy for Ethereum in the short-term in relation to ICOs. A lot of those watching the markets expect that ICOs will sell their Ethereum. This has been reflected by sentiments on Twitter with a lot of people speculating that the sale of Ethereum by ICOs is likely to continue.
Currently, the coin is trading in at $183 with a market capitalization of $18.68 million according to CoinMarketCap, having in the past week experienced a drop of more than 32%.
A cryptocurrencies trader and investor, Nuno Bispo expect ICOs to sell low since it is not their money the invested in Ethereum to start with. The sentiments are shared by El Novato and CryptoBitfolio, who further warns that the drop will continue and Ethereum is yet to reach its lowest price this year. Additionally, although a transfer of $5.5 million was made from the genesis block to Bitfinex, it didn’t impact Ethereum’s value at the time.