Ethereum Treasury Withdrawals from ICO Wallets Reach Record High Number In December
Many projects that had their own Initial Coin Offerings (ICOs) using Ethereum have started to liquidate their ETH funds this year as the prices started to go down. Now, the withdrawals have reach an all year high of 420,000 ETH being withdrawn this month.
Diar has recently released information about this. No other month has seen such a large withdrawal rate, despite the fact that November have also beaten records. Not a lot of ETH is left on the reserves, too.
According to the market research made by Diar, this is mostly due to the neverending bear market that has appeared in 2018. In January, the treasuries had 4,627,148 ETH. Now, the nuumber has been reduced to only 3,052,168 ETH. Only this month, over 12% of all ETH has been taken out of the treasuries.
Bad Time To Take Out The ETH
It is important to notice that this is, in fact, quite a bad time to cash out. The price of ETH is near its lowest point in the year and most people are only taking their funds out because they are scared that the future can be even bleaker than the present and that the prices will be even lower in the future.
— Diar (@DiarNewsletter) December 20, 2018
The price of ETH was as low as $83 USD this year and the last quarter was very unforgiving for the token, which is now around $125 USD, somewhat far from its all-time low this year.
A single fact also helped the month to beat the yearly record: Filecoin. This project sold off all of its 216,906 ETH. Substratum, another ICO project, has sold out 8,931 ETH, too, almost all of its funds. Kyber followed this trend also and liquidated almost all of its ETH, taking out over 66,000 ETH and letting only 3,000 ETH left.