Bitmex Research Reveal New Details About Ether [ETH] Sell-Off by ICOs

ethereum price chart

A recent research conducted by Bitmex cryptocurrency exchange has shown that majority of Initial Coin Offerings which received ETH made profits when they sold them despite the slump in crypto markets and ETH particularly.

Ethereum [ETH] prices have witnessed a worrisome downtrend in 2018 sometimes falling below the cryptocurrency markets which has been in bad shape.

Many observers have attributed the slump to a large sell-off of ETH by ICOs that raised fund through token sales which received ETH. The rationale was that these ICOs decided to liquidate their ETH having waited long for the market to recover—which it hasn’t.

Bitmex’s research tells a different tale. The results suggested that the projects actually made profits at the time they sold their ETH holdings. These ICOs from 2017, it appears, have sold just as much ETH as they received during their token sales and did not lose due to the devaluation of ETH in recent months.

The study involved 222 ICOs which raised a combined sum of over 15.1 million ETH including 7.9 million ETH received by EOS. Of this number, 11.3 million ETH had already been sold out leaving the ETH balance at 3.8 million ETH.

The study further calculated the estimated profit gained of losses incurred by ICOs when they sold off ETH. The premise was that older ICOs were more likely to have sold for a profit while those that collected ETH towards the year-end before the crash may have lost. In general, Non-EOS projects gained roughly $727 million from sold tokens ad a possible $93 million on the unsold tokens.

The study which was released on Monday was a follow-up on an ICO study on it conducted last year which analyzed the relationship between the various ICO projects and ICO team members.

Not long ago, TrustNodes released a research that showed that ICOs sold 160,000 ETH valued at $33 million in the space of 10. The data showed a huge sell-off of $82,000 on September 4, just before a major dip in cryptocurrency markets. This seemed to confirm the large sell-offs as the cause of the ETH price dips.

Bitmex, says this may not be the case. The report explained:

“Quite what [Bitmex Research] means for the Ethereum price going forward is unclear, however, we believe we have shown the “panic sell” thesis is either false or will only occur to a lesser extent than some expect.”

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