BitMEX CEO Calls Ethereum a Shitcoin, Says Ether (ETH) Price Under $100
THE FORTHCOMING DOWNFALL OF ETHEREUM?
The second-largest cryptocurrency, Ethereum, was traded as low as $249 on Monday 13 August 2018 and is still down 22 percent over the past seven days. It is speculated to plunge to double-digit price levels. Although Ethereum has not suffered from much of a loss compared to the bitcoin value itself, bitcoin is certainly dragging all alt-coins with it at this rate. with the ETH/BTC ratio declining, there is no Ethereum price improvement in sight as of right now. In March, the US Securities and Exchange Commission (SEC) said crypto trading exchanges need to register with the federal agency. This was one of the reasons for the market’s bearish performance.
BitMEX CEO Arthur Hayes argued that Ethereum is a “shitcoin” whose price has been reinforced by initial coin offerings (ICOs) since at least early 2017. Most investments have come from Venture Capital firms (VCs), who he says will eventually succumb to the bear market and dump their ether and ERC-20 tokens at whatever price they can get.
“The VC investor who has never suffered the vagaries of the market is as green as the noob who thinks he or she can go from 1 to 100 Bitcoin in a few trading days. They don’t have the mental strength to cut positions to limit further losses, or backup the truck and buy opportune dips even though they are down. More importantly, LPs can now see an objective last price for a particular token, and can’t be hoodwinked. They will attempt to be a Monday morning quarterback, and that only adds to the VC investors’ anxiety. At a certain point, they go ‘fuck it’, and dump everything they can.”
The sell-off is surmised by some analysts to be the result of ICO-funded startups cashing out their ether, due to the fear of the bear market extending further than many people had initially expected. Hayes argues that it will be VCs who deal the real death-blow since fund managers tend to operate according to a herd mentality.
There are those who believe that a sustainable token economy can exist but no one will be buying at these levels. Will the prices ever go up or will the bloodbath continue, making investors wary?