A new report published by BitMEX has brought interesting conclusions on the Ethereum budget of several ICO projects. The analysis of data belonging to 222 projects was carried out in collaboration with TokenAnalyst. However, the results show that the treasury accounts of these ICO projects may not have been exposed to Etherum price shifts as believed.
The BitMEX analysis was performed to determine how much gains and losses these projects suffered during price changes of Ethereum. However, the results indicate that most projects have sold as much Ethereum as they have generated, at least in terms of US dollars.
This means that projects have already made significant gains during the bear market, while not selling all of their Ethereum.
1 / BitMEX Research publishes a new report that analyzes the Ethereum holdings of ICO projects. We establish that ICOs have already sold almost the same amount of Ethereum dollars they initially generated.
– BitMEX Research (@BitMEXResearch) 1 October 2018
The projects have gained despite the collapse in prices
The price of Ethereum has declined by almost 85% since the currency peaked in December 2017. This is when many have noticed that ICO projects mainly focus on Ethereum. For this reason, the experts started to wonder if this was a wise move and could cause a "downward spiral of prices".
If the price of Ethereum were to go down, many expected all these ICO projects to start selling ETH in a panic. The BitMEX report shows that 222 projects have raised about $ 5.5 billion in Ethereum. However, the report also claims that by now most of these projects have already sold the same amount in US dollars, while maintaining a 25% stake in ETH.
Most of these projects successfully achieved this by selling the currency before its price collapsed. Due to correct forecasts, they managed to avoid losses and even made gains of $ 727 million. Furthermore, as mentioned above, they still hold about 3.8 million Ethereum in their balance sheets.
Unfortunately, many aspects may have interfered with obtaining correct figures during the analysis. For this reason, the report should be considered a rather rough estimate.
One project that has had a significant impact is EOS. According to the analysis, EOS collected almost 70% of Ethereum compared to its value in USD. Since then, the project has regularly sold ETH during the ICO period. BitMEX even managed to identify about 171 EOS private transactions that contained Ethereum.
Internal transactions have made data analysis much more complicated. Above all because there is the possibility that Ethereum on the EOS budget has been counted twice. But the report states that there is no reason to believe that ETH has been recycled. If true, EOS alone managed to raise over 7.2 million Ethereum during ICO.
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