Are ICOs Selling Their Ethereum?? It doesn’t look like it
Ethereum, along with almost every cryptocurrency, has been experiencing large price drops the past few days. This is due to a variety of reasons. The US stock market, the SEC and global events are all contributing to the downward pressure on crypto prices.
ICOs Selling Ethereum?
Many have pointed to ICOs being the main culprit in the sudden price decreases of Ethereum. However, this spreadsheet created by Diar says otherwise.
Diar has been monitoring the ETH balances of the largest ICOs. As you can see on the table they provide, ICOs have not been selling as much of their ETH as the public thinks. While there has been some major withdrawals, most notably the 71,000 ETH withdrawal made by DigiDAO in September, only 19% of the total ETH has been moved from ICO wallets in 2018.
The SEC & US Stock Markets
The SEC passed judgement on two ICOs recently, which spooked cryptocurrency investors. The popularity of ICOs created large inflows of new capital into the crypto market. Unfortunately, that looks as though it has come to an end.
The US stock market looks as though it is entering into a state of correction, which is pulling the crypto market down with it as well.
While the stock market always recovers, cryptocurrency investors are also hoping a recovery is in the near future. While we most likely will never see the mania that occurred at the end of 2017, we firmly believe that cryptocurrencies are not going anywhere.