Initial Coin Offerings (ICOs) that are built on the blockchain of Ethereum (ETH) are seen as one of the fundamental catalysts for causing a rally in the value of ETH in 2017. Right now, they are being blamed for the downward trend of the digital currency.
Ethereum (ETH) Price Rally and Trend
Ethereum (ETH) lost over 17 percent of its value on Monday, August 13, 2018 – this is the biggest decline since March. The value of the digital currency traded as low as $258, pushing it beneath the $300 mark for the first time since November last year.
Since this year, the digital currency has lost 60% of its value. Ethereum (ETH) skyrocketed over the $1k mark in February this year as startups created projects on the blockchain of Ethereum and sold tokens in exchange for ETH in the form of Initial Coin Offerings.
Investors that purchased Ethereum (ETH) to participate in those Initial Coin Offerings caused a spike in the value of the digital currency. Now, most of those projects are cashing out to cover expenses with the fear that the bears in the market this year will drag out – says Biswa Das, who manages BloomWater Capital.
According to Das, these startups raise a lot of money, but they lack cash management or treasury management experience, so they are selling off to early, causing so much pressure in the market. The selloff was fine last year, but right now it causes a lot of pressure in the market because the market is so fragile.
Ethereum (ETH) Price Today – ETH / USD
At press time, Ethereum (ETH) has plunged to $263 after declining by more than 17 percent over the past twenty-four hours. The market cap of the digital currency has also reduced to $27.49 billion and its trading volume over the past twenty-four hours is $2.04 billion.