Why is this not correct? The teams that create ERC-20 are dependent on Ethereums blockchain to survive in the first place. Just because they market their platform/services and etc, doesn't mean they are not directly connected to Ethereum.
At the end of the day, most ERC-20 tokens are copy and pasted.
Another broader example is Bitcoin's dominance of the market. When Bitcoin falls or gains, alternative coins will follow. Everything is connected, and if the top 2 coins that are interlinked and every other alt-coin is synonymous with these chains, then all markets will follow suit.
There's a lot to this, but mainly has to do with the traders. Since every token is traded in either ETH or BTC, then their valuations will also decline due to being linked. Just like if any currency devalues in the real-world, those companies valuations also decrease, unless they gain against those currencies (valuing the company even higher).
At the end of the day, most ERC-20 tokens are copy and pasted.
Another broader example is Bitcoin's dominance of the market. When Bitcoin falls or gains, alternative coins will follow. Everything is connected, and if the top 2 coins that are interlinked and every other alt-coin is synonymous with these chains, then all markets will follow suit.
There's a lot to this, but mainly has to do with the traders. Since every token is traded in either ETH or BTC, then their valuations will also decline due to being linked. Just like if any currency devalues in the real-world, those companies valuations also decrease, unless they gain against those currencies (valuing the company even higher).
Communication ETH and altcoins is not very proportional, it is not predictable, if we talk about real projects, their cost should be somehow related to USDT, because the projects require real costs.
They aren't exactly 1-to-1, and often there is a time-lag between markets correlating, but all markets behave in the same manner. Just like how every market declines when BTC declines, ETH to a lesser extent, but it still occurs. You can view the past 4-5 days where ETH lost about (rough numbers) 15%, then gained 15%, and see how most ERC-20 tokens and similar platforms behaved.
Eth's price is a fantastic indicator of what will happen to your erc-20 tokens.
Their costs are never related to USDT (only when the ICO is occurring and for a brief time after it has ended), and real-costs do not even come into play when it comes to stability of ICO funded projects. Bitcoin is the major driving force behind all valuations, and Ethereum plays a similar role on the markets, but mainly ETH's affects similar blockchains and ERC-20s.
