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Jimmy Song is a popular Bitcoin developer who believes that many investors may be about to cash in on their investments in Ethereum and has mapped a link to the incident that Yahoo has experienced in the years & # 90;
In 1994 and 1995 the technology industry was receiving waves of money. During the early days of the Internet, investors were very excited and ran to collect the buzz, but the crash that followed left many of these technology companies with values 90% lower than before the crash.
The Bitcoin developer has compared the rise and fall of the search engine to what Ethereum is currently going through.
"They were part of that whole dot-com bubble, at one point they had a crazy rating, they were known as a portal and a search engine and they had all these startups that were pouring money into yahoo just to advertise on their first page. "
The clamor of the product was beyond their financial production, but the huge amount of startups arrived on the scene in the technological world.
"The advertising rates were incredibly high, which caused yahoo's rating to be so high it was largely due to those advertising rates, and those advertising rates were there just because there were so many start-ups -up who were trying to get their brand out ".
The song says this should ring a bell because it is similar to what is happening at Ethereum today. According to Song, Ethereum jumped on the ICO's hype at a price above $ 1400 and now the value is falling while the advertising train seems to be starting. The price may slow down now because Ethereum provides value as a platform and ICOs based on that platform have not done much in terms of usage and adoption.
As reported by ZyCrypto, Song also noted that the low entry barrier for ICO. the cost of creating an ERC20 token is very low, so ICOs will start popping up, but investors are now backtracking on projects that do not provide working products.
In the end, Song believes that the price of Ethereum will continue to fall and many investors will leave when the bubble breaks out.
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