CryptoCurrency : Do ICOs still impede the market or are they price neutral because the 2018 ICOs get their money from VCs that need to buy the Ethereum first instead of individuals who had held it for longer?
Throughout the last 8 months we’ve seen the market unable to go up substantially.
Many have said that this is because of the $6.3B raised in ICOs that those finished ICOs have dumped on the market.
More specifically, It’s estimated that only $18B of Fiat have gone into crypto total, leading to a $800B market cap, since every dollar put into crypto increases the market cap
by $50. https://www.zerohedge.com/news/2017-12-02/jpmorgan-has-some-bad-news-bitcoin-bears
Since the beginning of the year, $6.3B was taken out of the market through ICOs dumping all of their Eth, thus crashing the whole market.
Only last month, most 2017 ICOs seemed to have dumped all of their Eth, such as EOS. That’s why the Bitcoin always goes went to $10,000, but then another company comes a long and dump their Eth.
But, then we have the 2018 ICOs which have already raised $6.8B.
Now, the difference is that the ICO game is very different in 2018.
While in 2017, most funds were raised from individuals, in 2018 most funds were raised from VCs.
For VCs to send Ethereum, they first need to get Ethereum from the market, since only very VCs haven’t accumulated Ethereum in the past.
So, all Ethereum sent to ICOs, first needs to be bought on the market, which then later is dumped on the market again by the ICOs, but is price neutral, because they didn’t come from investors that had Ethereum for a couple
of years.
So, my question is, do ICOs dumping their Ethereum still suppress the price or does it not affcet the price?
Thank you.
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Author: galan77
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