New Research Claims Most ICOs Have Profited Off Selling ETH

[rhubygold23]

Bitmex Research is back with another detailed report, this time into the ethereum holdings of ICOs. Ethereum’s downward trajectory has been attributed in some quarters to ICOs offloading ETH to pay the bills. If so, data suggests that those projects have profited handsomely off their ETH holdings in USD terms, despite its falling price.

ICOs Have Sold Most of Their Ethereum for a Profit

Ethereum’s tanking price, sliding from over $1,400 to below $200 in seven months, has alarmed many cryptocurrency investors. ETH is the backbone of the ICO economy, and its inability to sustain support levels against BTC has led to fears of there being a run on ethereum, akin to that which occurs when customers fear a bank lacks the funds to cover its liabilities. If Ethereum projects believe the cryptocurrency is likely to drop further, they will feel pressured to sell in order to maximize their capital, further accelerating the token’s decline.

Commenters have been in disagreement over the extent to which ICOs cashing out has triggered ETH’s downfall. Dapp Capitulation has been the go-to tool for anyone trying to keep track of which ICOs are moving ETH (presumably with the intention of selling) and when. In the last 30 days, for example, Status has sent 8,000 ETH to an exchange wallet and Decent has moved 20,000. New research from Bitmex and Tokenanalyst, however, provides a more holistic picture of ICO movements of ethereum. Its key finding?

WHAT DO YOU THINK?

THIS IS THE SOURCE: https://news.bitcoin.com/new-research-claims-most-icos-have-profited-off-selling-eth/

[cowz]

Until bills can be paid in ethereum directly these ICOs will always be cashing out, they simply cannot hodl because they have liabilities to pay. Ethereum will take a long time to recover