The drop in the price of Ethereum divides the crypto community – TechCrunch


Hello and Welcome back to the latest edition of all the Cryptos are getting Rekt right now.

Crypto bloodbaths have become quite common in 2018 – mainly because of the crazy growth of 2017 – but we have not covered them all because they are so numerous and often include so-called "flash crashes" or small drops, but the fall which is happening today is worth noting for several broader reasons.

Firstly because this is an important test for Ether – the token associated with the Ethereum Foundation, which is the second largest cryptocurrency by volume, has had a downward spiral with few signs of change.

Ether, which is the preferred platform for most developers building blockchain, is down nearly 17% over the past day. This has erased billions of dollars in paper value (cryptographic) while the bear market of cryptocurrencies continues to push the markets south.

The decline also marks the first time ever that the price of an Ether has fallen below its year-on-year estimate: an Ether has a value of $ 266 at the time of writing, against $ 304 on August 14, 2017 The token has been steadily declining since the beginning of May, when its maximum value was $ 808, and as the fulcrum of many ICO project tokens, its demise also has the value of most of the other tokens.

Looking at this morning, all but two of the top 100 tokens have been falling in the last 24 hours with many losing 10-25 percent of their value in the past day. Even Bitcoin, fell below $ 6,000, after passing $ 8,000 for a month last month.

The peak of Ether under $ 300 has triggered a mixed debate among those of the cryptic community. The token was considered visionary, an improvement on Bitcoin that offers developers a platform on which to base themselves – whether it be decentralized apps, decentralized systems or otherwise – but it has not been reflected in this withdrawal of prices for a few months [19659002] Of course, two founders who talked about TechCrunch and held ICOs have expressed the belief that Ether "needs to find a certain price stability" to allow attention to focus on the product and not just on speculation "to get rich ". Obviously, it is useful that the two founders and many of those who hold token sales have long sold the Aether or Bitcoin they have collected in exchange for legal tender. In fact, if their sale of tokens was last year, they are likely to receive much more money in the real world than they initially contracted or would have obtained.

But still, the idea of ​​coherence is shared by others who are in a crypt professionally. This includes investors such as Kenrick Drijkoningen, who is collecting a $ 10 million fund for LuneX, a spinozzo from the Singapore-based venture capital firm Golden Gate Ventures.

In an interview last week, Drijkoningen told TechCrunch that a fund and doing business in a "low tide" market as it now beats trying to do the same in a bubbly period with hype and peak ratings – an Ether was worth almost $ 1400 in January, for example. A number of other VCs have long stated that, ultimately, stability is good for the ecosystem.

Vitalik Buterin is the creator of Ethereum

But, on the other hand, there are more pessimistic voices.

investors invested by TechCrunch, the sense is that with the slowdown in the ICO funding boom that has fueled much of the rise of Ethereum, there may be less incentive to maintain the broader market interest in cryptocurrency.

For a Bitcoin bull, the intrinsic value of Bitcoin as an immutable and decentralized ledger acts as a more powerful design than the perceived changeability and centralization offered by the Ethereum platform.

"People also begin to understand the unique value of an immutable and decentralized ledger and recognize that Ethereum is not that," wrote the investor in an email

Another long-term problem that Ethereum has to face, according to this investor, is the promise of decentralized apps supported by the token has yet to be released. Crypto Kitties, a success hit at the beginning of this year, has faded and now there is competition, as Bitcoin's Lightning Network is adding nodes and apps – called LApps – that can operate in a similar way but take advantage of the bitcoin register.

It is still early days of course the markets will rise and fall always, but this is the first major test for Ether and Ethereum. Beyond the sport of price speculation, it is worth looking to see where it will end.

Note: one of the authors of this post – Jon Russell – has a small amount of cryptocurrency. Enough to get an understanding, not enough to change a life.

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