Ethereum is still in the fall, with many pointing to the poor state of the market, blaming the transactions on short positions, but we can say for sure that active sale of token-ICO, of course, further worsens the situation.
Starting in may, we see a steady rollback of Ethereum, which is still not stopped. Despite the fact that this bear market has affected the majority of scriptaction, currently ETH appears to be the most affected. Just last week, the cryptocurrency has lost almost 33%, and many are trying to find the answer, why is there such a situation?
Some point to the growth of short positions, which recently reached a record level. Only on Bitfinex announced 208 689 short positions, although their number did not exceed 5,000.
In addition, this week marked active sale ETH collected during the ICO, which seems to have also had a negative impact on the price. This is what always warned during the original proposals of coins that one should not arrange the sale before a certain date. However, this did not stop some, and some projects didn’t even get to promising consumers.
As recently noted by one Twitter user:
It is clear that the projects that raised the money for top value ETH, tired of watching their incomes decline and want to avoid large losses. Unfortunately, for the rest of the holders and projects such sale will not help to ease the situation.
Noting in an interview with Bloomberg this situation Biswa Das, Manager of a hedge Fund to work with cryptocurrencies, shared his negative opinion about these dumps ICO. However, he argues that in the long term, Ethereum can recover as long as demand for projects that use the network ETH.
Unfortunately, such a prospect seems unlikely in the near future, since, according to a recent report from GreySpark Partners, half of all ICO, launched in 2014, is not able to collect almost no money.
There is hope that the situation can be fixed with entry of institutional money into the stock market, which is expected by the end of this year.
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