Initial Coin Offerings Continue To Sell ETH Amid Bear Market
It seems that the bear market for Ethereum (ETH) continues. Different Initial Coin Offerings (ICOs) continue to sell their funds even when ETH price is under $100. Most of the ICO tokens have been performing very weak compared to other virtual currencies such as Bitcoin, XRP or other major cryptocurrencies.
Due to the fact that these ICOs gathered their funds in ETH and BTC, they had to sell their funds in order to keep operating in a bear market. Although Ethereum has fallen more than 90% there are some ICOs that continue to liquidate their assets.
According to data provided by Trust Nodes, ICO projects have sold around 416,000 ETH in the last 30 days. This is the largest amount sold since summer in just a month. Back in August ICOs sold 100,000 and in September 300,000.
Trust Nodes shows that at the beginning of the year, ICOs sold 630,000 ETH on March 27, 2018. Additionally, some reports show that EOS was involved in that sell-off at that time.
One of the leading projects selling tokens is SingularDTV. It has sold 60,370,000 ETH. Aragon sold 50,000 as well as Kyber Network. Nevertheless, there are several projects that have millions of ETH and could be sold in the future if the price does not stop falling.
Initial Coin Offerings are also being scrutinized by the U.S. Securities Exchange Commission (SEC) that is trying to regulate the market. Airfox and Paragon have been accused of being illegal securities and both companies had to pay a $250,000 fine and give investors their funds back.
There are other companies and ICO projects that gathered funds earlier this year but are reducing the number of individuals working. For example, Status announced that the will be cutting 25% of their staff.
As mentioned before, Ethereum was one of the most affected virtual currencies in the market, losing more than 90% of its value since the beginning of the year. The question that several individuals and analysts are asking is how long time this bear market will last. Bitcoin could keep falling under $3,000 in the near future as reported by some experts, pushing down the whole market.
It is clear that all these ICOs that have been selling funds during the last months will have to provide information about their accounts. There are some projects that raised several millions of dollars and investors want to know what happened with the funds.
At the time of writing, Ethereum is the 3rd largest virtual currency with a market capitalization of $9.03 billion. Each ETH can be purchased for $86.91, according to CoinMarketCap.