The Ethereum balances of the initial money supply are yet to be sold, but could give a new impetus to the price of the ETH


The Ethereum balances of the initial money supply are yet to be sold, but could give a new impetus to the price of the ETH

As for the market data available on the Internet, it seems that there is still a lot of Ether linked to the existing ICO projects. As a result, a new new fear of "mass liquidation" is now in the air that could bring down the value of Ether even lower in the coming days and weeks (many analysts even suggest that the digital currency could fall to its levels of 2017).

What's in store for Ethereum in the near future?

At present, the market value of Ether has already been reduced to a minimum of 18 months of about $ 126. This represents a dramatic collapse of the once premier estate, which was traded to an ATH (historic high) of about $ 1400 just over ten months ago.

In terms of what is causing this last dump, many analysts are saying that the SEC's last ruling against two ICO projects could be behind this sell-off. Not only that, recently, Zachary Coburn, the man behind Etherdelta, was also called by the SEC to "operate an unregistered national stock exchange". However, this news does not yet justify a 40% reduction in the intrinsic value of a premier currency (with any imaginative effort).

More on The Matter

It is also worth noting that a research study published recently by the online media issuer "The Block" shows that ICO Treasuries now have only a little over 3.57 million ETH tokens in their possession. This number roughly translates into approximately 3.5% of the worldwide supply of Ethereum.

Moreover, given that the price of ETH continues to decline, it seems that more and more companies will have to unload their cryptographic holdings to obtain some tangible assets in progress.

Finally, the research also states that in April of this year, ICO treasuries held 4.25 million ETHs, or 4.5% of the total Ethereum token supply. This seems to imply that since April many of these ICO projects seem to have liquidated most of their digital assets.

Final take

Ethereum is currently back at its 2017 levels, which means that ICOs will probably not try to sell their remaining chips at any time.

However, one of the main concerns is that most ICO projects do not "generate new revenue streams" and therefore, as a desperate attempt to reduce losses, they may have to sell all their remaining digital holdings.

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