Ethereum's downward trend may not be over yet, ICO Off is expected to sell effectively


In recent months, investors of ETH, the native cryptocurrency of the increasingly popular Ethereum project, have had to fight bears at every turn, as assets have been battered by negative news and a faltering sentiment on a daily basis. Although significant progress has been made on the project, ETH has recently plummeted to set a new year-low minimum of $ 200.

ICO spent $ 30M of ETH this week, still $ 600M to spend [19659003] As with any trendy topic, the disappearance of ETH was a topic of in-depth discussion with cryptanalysis analysts, investors and leaders alike, even at the most remote margins of the crypto industry. Everyone and their dog have had something to say about the violent decline of Ethereum, with many who have turned to social media platforms to express their two cents on the issue. While there was a large presence of conflicting opinions based on emotion, there were some gems that brought logic and reason to the decline in the price of Ether.

One of those prominent gems was a miraculous amount of data from the cryptocurrency researcher Kevin Rooke, whose NewsBTC work has only recently been concerned. On Monday, Rooke continued to show her analytical skills through a tweet, alluding to the relationship between the price of Ethereum and the ICOs, with this report as one of the main reasons why ETH was delayed.

According to data from Santiment, one of the leading cryptographic analysis providers, compiled by the researcher, the ICO spent over $ 30 million collected in Ethereum last week, or 153,500 ETH to be precise. Even if "spent" has more significance in the context of the activities supported by blockchain, it can be assumed that most of the 153,500 ETHs were sold in spot markets, so that projects could be safe for their war baskets.

While the sale of 153,500 ETHs was probably not the only reason why the market fell 20% over the last seven days, it would be logical to assume that the so-called "ICO sell-off" has taken a bit. of part in this period of capitulation. However, as Rooke added, it's still a "scary part", since ICOs still have over $ 600 million worth of Ether (three million ETHs) in their treasuries, leading some to ask if these companies will sell or they will keep their cryptographic assets. [19659004] This statement mirrors a similar comment made by Alex Kruger, a well-known cryptocurrency commentator, a few weeks ago. In a tweet dated August 23, Kruger wrote:

According to the database @ santimentfeed the ICOs for which the Ethereum portfolios are known have a visible balance of ETH 3.3 millions, or $ 900 million at current prices. ETH 135K were transferred / spent in the last 30 days (around 4%).

However, some argue that there are other catalysts behind the sad performance of Ethereum in recent weeks. Nouriel Roubini, a professor at the Stern School of Business in New York and a noted economist, recently released a tweet to state that it is not surprising that [that] Ethereum is collapsing. "

Roubini explained that the Most DApps on the platform are "CryptoKitties, pyramids of Ponzi pyramids and casino games" and the rest of the applications are DEX, which "[nobody] uses as 99% of transactions are in centralized power plants." 39. Economist seems to assume that these DApps are inherently bad, but you can probably see decentralized apps, games and casinos as a way to strengthen this industry, rather than throw it in a bad light.

Regardless, it's obvious that the Ethereum project it has become rather the subject of criticism and controversy within the cryptosphere, and for now, this sentiment is likely to continue.

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