Initial Coin Offering market was on a boom last year with billions of dollars being invested in ICOs from all around the world. The largest investments made by investors were made in Ethereum. Now as the price of ETH is on a downfall since the start of the current year, the Ethereum selloff by ICOs has been rising month by month and the highest rate has been recorded in the current month of December.
According to data from NKB group report, around $9.97 billion was raised by Initial Coin Offerings during December 2017 to June 2018 with most of the investments in Ethereum, thus making hundreds of Initial Coin Offerings, large holders of ETH.
Diar.co, a website that tracks Initial Coin Offerings has tracked that ICOs have been rapidly selling their Ethereum holdings starting from June 2018 to December 2018. In this period the amount of Ethereum held by Initial Coin Offerings in their respective wallets has been decreased from around 4.2 million ETH to 3.5 million ETH which makes it around 24% tokens being sold out in such a short duration. The selling off by Initial Coin Offering has also contributed largely to the falling price of Ethereum which was around $800 in the starting months of the year to around $400 in the mid of the year to around $110 currently.
According to data from Diar.co, DigixDao, a gold-backed stablecoin is currently the top holder of Ethereum. Diar.co also reported that Aragon (ANT) has swapped a large portion of their Ethereum holdings into DAI (Stablecoin) recently in midst of the falling market.
The falling price of Ethereum has led to a large number of Initial Coin Offerings and cryptocurrency related companies falling out of funds for operations. Recently ETCDEV, a developer group for Ethereum Classic was shut down due to lack of funds and also Consensys, a well-known name in the crypto space had to fire around 13% of its staff along with restructuring its management strategy because of the falling prices of cryptocurrencies, specially Ethereum.
In the midst of the bear market, Initial Coin Offerings who are in fear of losing their investments have started to sell off their holdings. Just a few hours back, around 330,980 ETH were transferred from an unknown wallet which is probably owned by an Initial Coin Offering to Bitfinex Exchange probably for selling as the market recently showed a bullish momentum though the overall situation is still quite bearish. The market is expected to fall even further as being predicted by market analysts. The price of Ethereum is being predicted to reach around $65 to $70 soon.
Here are the details of the transaction to Bitfinex Exchange from the unknown wallet:
The following article is not financial advice. Readers are advised to do their own research and analysis before investing or trading any digital asset such as ETH as the market is quite volatile.
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