The virtuous circle that saw buyers of ethereum-based ERC-20 tokens drive ether's price above $1,400 mid-January has morphed into its diametric opposite.
The initial coin offering boom has fizzled and the price has sunk to just above $200.
This new phase, a vicious cycle downturn that has exposed the ether market's intrinsic connection to the ICO boom and bust, is of course painful for anyone who bought ether in the last 12 months.
But in the spirit of encouraging the crypto community to embrace failure as a real-world source of learning and growth, the experience is also incredibly informative for understanding how value is formed and lost in crypto assets attached to blockchain platforms.
https://www.coindesk.com/gas-aint-gold-why-ethers-price-could-tank-even-if-ethereum-succeeds/
Because a lot of icos have been dumping it when there was no enough demand to buy all of ethereum in the market. this has created so many panic selling. The initial coin offering boom has fizzled and the price has sunk to just above $200.
This new phase, a vicious cycle downturn that has exposed the ether market's intrinsic connection to the ICO boom and bust, is of course painful for anyone who bought ether in the last 12 months.
But in the spirit of encouraging the crypto community to embrace failure as a real-world source of learning and growth, the experience is also incredibly informative for understanding how value is formed and lost in crypto assets attached to blockchain platforms.
https://www.coindesk.com/gas-aint-gold-why-ethers-price-could-tank-even-if-ethereum-succeeds/
ICOs have been driving those people to buy more than 5 millions ethereum in total or even more. This has been giving a lot of value to the ethereum but remember ICO will have liquidated their ether.
