Why did the owners of Ethereum cash in their coins?
Ethereum is the second most important virtual currency on the market and one of the most famous platforms in the crypt space. Ethereum is used by developers who create decentralized applications and by people who perform fund transactions easily or execute smart contracts.
In recent months, Initial Coin Offerings (ICO) have sold 125,000 Ether (ETH) in the last month, according to data gathered by SANbase. 57 ICO projects sold over 125,000 ETH worth over $ 400 million dollars.
For those who do not know it, SANbase is a platform for users who have access to important virtual currency data. The company was founded in 2017. They inform that Ether is sold to have US dollars or BTC in the event that the crypto market continues to fall further
One of the most important sellers is the encrypted exchange Cobinhood ( COB), which sells 25.630 ETH. Another major seller was Atonomi (ATMI), which sold 12,000 ETHs.
In addition, the decentralized exchange platform 0x (ZRX) sold 1,500 ETHs and Kyber Networks (KNCs) 2,000 ETHs. There are other projects such as Propy (PRO) and Quarkchain (QKC) that have also sold a significant number of ETHs.
The main problem here is that Ether is used by ICO and fundraising projects. If they need to pay for lawyers, marketing campaigns, development and research, they have to sell their ETH. Also, if the market falls and they do not sell ETH, it would like to do it before it's too late, creating a sales panic.
One other thing to say is that ICOs have not had good months since May. The truth is that investor enthusiasm dropped after May, creating less purchasing pressure for ETH. In fact, since that month, the price of Ethereum has fallen by over 40% and some of the ICO have lost a large part of their funds.
The CEO and co-founder of Cofoun.it, Daniel Zakrisson, explained one of the things mentioned in the article:
"It is really very simple, we have just released our internal treasury management in D2 Capital, in order to offer services management of the treasury to other encrypted startups.Then this move of our ether was actually a change of keeper and rebalance the ether with the bitcoin, we sold nothing to the fiat. "
The founders of Cobinhood, an exchange Taiwanese, they announced a new venture called the DEXON Foundation, receiving $ 20 million from IDG Capital. DEXON wants to allow developers to create decentralized applications easily.
The Cobinhood sell-off may have damaged markets and given the company $ 48 million and $ 42 million.
It is important to mention that the decentralized exchange has also decided to launch a COB holder with airdrop premiums with some Ether, but there is no information that funds come from an exchange or a private portfolio.
At the time of writing, Ethereum is the second largest virtual currency in the market and is trading around $ 291 dollars. In the last 24 hours it has recorded an increase of 1.98% and has a market capitalization of $ 29 billion.