Cryptocurrency News Now!: Are ICOs to Blame for Ether Dump?

Wednesday, August 15, 2018

Are ICOs to Blame for Ether Dump?

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MARKET

COIN	PRICE	24H

BTC	$6,413.409823	+4.85%

ETH	$286.845017	+8.45%

XRP	$0.288776	+9.26%

BCH	$518.696427	+4.77%

EOS	$4.662851	+6.52%

*Information as of 9:30 AM EST

MARKET

Are ICOs to Blame for Ether Dump?

ETHER DECLINE

Since the beginning of this month, Ether is down a whopping 44%, going from $470 to $260
This marks the lowest point for the currency this year and the first time it has been under since November of last year
Ether was not alone in this decline, the rest of the cryptocurrency market lost a total of $150 billion so far this month

CAUSE FOR DECLINE

While other cryptocurrencies have also been hit by the bears, Ether has been hit the hardest and there may be a reason behind it
Erik Wall, a cryptocurrency researcher at Cinnober, predicts guesses that many of the ICOs who had raised millions of dollars in Ether over the past year have begun to dump that Ether on the market

Wall shared his reasoning:

“The problem when you give millions of ETH to ETH competitors is that they can unload the ETH on the spot market and short ETH on the futures market before that, so they’re not only securing the funding but also manipulating the underlying spot market in favor of their shorts.”

SHORTS AT ATH

Ether shorts on BitMEX have hit an all-time high, showing that people are betting on Ether's demise
Just within the past month, BitMEX introduced 50x leverage trading for the ETHUSD pairing allowing traders to bet more than they have

CYCLICAL

Ether and ICOs have a symbiotic relationship, they need one another to survive
ICOs need to sell Ethereum at some point to fund their projects, this may cause a decrease in the price of Ether
If Ether prices decline, investors now have an opportunity to pick up cheap Ether that can be invested in the next ICO, then the process repeats

It is impossible to truly know if ICOs dumping is the sole cause of this Ether decline, but it is a logical assumption.

NEWS

'Extinction Level Event' Could Rock Crypto Market, Says Expert

CRYPTO EXTINCTION

On Tuesday, the president of the Bitcoin wallet Xapo, Ted Rogers, tweeted that an extinction level event could be happening in front of our eyes
In the face of this devastation, Rogers urged investors to flock to cheap Bitcoin as it will inevitably survive the carnage

The extinction may have already occurred, as most coins are at least down 80% from all-time highs

BTC DOMINANCE

The king of cryptocurrencies has no doubt been the strongest in the face of bears
Most coins are built upon Ethereum, which has dumped the hardest, possibly caused by ICOs cashing out
All of this has added up to Bitcoin's dominance over the market steadily rising

IS THIS BAD?

Yes, your portfolios may be suffering significantly, but this 'extinction' may not be terrible for the long run
Many people complain that the market is filled with too many coins that don't have a use case or are scams, it will be harder for bad coins to escape this downtrend
The only thing you can control is to invest in fundamentally strong coins and one day you might laugh about this bear trend

NEWS

Messaging Giant LINE Creates $10 Million Blockchain Venture Fund

LINE LAUNCHES FUND

Released on Wednesday, LINE announced that it has launched a $10 million venture fund via its subsidiary unblock corp.
The new venture fund aims to boost development in early-stage blockchain startups
Since the fund focuses on token investments, LINE is one of the first public companies to formalize token investments through a corporate fund

LINE LOVES CRYPTO

LINE, a messaging app that boasts over 200 million active users, is definitely interested in exploring blockchain technology and crypto
In July, LINE launched their own cryptocurrency exchange platform called Bitbox
Today, Bitbox will allow users to trade Tron (TRX) after it passed the Bitbox committee review for listing

EXCHANGE

Coinbase Was Adding 50,000 Users a Day, Says CEO Brian Armstrong

50,000 USERS PER DAY

On Tuesday, speaking at a conference, CEO of Coinbase Brian Armstrong revealed that at the height of last year's crypto market, Coinbase was adding over 50,000 users per day
Though he did not reveal how many users Coinbase is signing up per day now, he did mention that the exchange's growth follows closely with Bitcoin's growth
For example, he mentioned when Coinbase first started it was adding about 500 users per day and after Coinbase endured its first bubble it was adding over 5,000 users per day

ARE THEY WRONG?

At the conference, Armstrong was asked if he believes critics like Warren Buffett and JP Morgan CEO Jamie Dimon are wrong about Bitcoin
In response, Armstrong confirmed he believes they are wrong and rightfully so because the technology isn't developed to the point of mass adoption yet
To add, Armstrong said that he believes around 10% of crypto is used for real-life applications already

Speaking about adoption, Armstrong shared:

"I think it will be quite some time before you cross the street to Starbucks in the U.S. and pay with crypto."

MORE BREWING

Ex-PayPal CEO Bashes Bitcoin, Says ‘There’s Just No Value’ to It
Crypto Goes Green: Using Renewable Energy in Cloud Mining
Playboy Sues Wallet Developer for Failing to Integrate Crypto Across Its Platforms

TODAY IN CRYPTO

Cardano (ADA)

Special Announcement

null

PROOF | SOURCE

Bitcoin (BTC)

Cboe XBT Expiration Date

Cboe XBT Bitcoin Futures Trading Expiration date is 15 August, 2018.

PROOF | SOURCE

Komodo (KMD)

Airdrop Snapshot

Snapshot for Chainzilla airdrop on Aug 30 to KMD holders.

PROOF | SOURCE

Today in Crypto is powered by coinmarketcal.com

COIN OF THE DAY

Ruff (RUFF)
Ruff Chain combines the Internet of Things technology with the blockchain. It contains a distributed operating system and an open main chain, connecting peer to peer network and consensus mechanism from the virtual world to reality. Traditional blockchain forgo Availability over Consistency and Partition Tolerance, however Ruff enabled Availability through the combination of Edge Computing and blockchain, making Availability available, and thus meeting the requirements of elastic real-time requirements.
WEBSITE \| TWITTER \| REDDIT

Ruff (RUFF)

Ruff Chain combines the Internet of Things technology with the blockchain. It contains a distributed operating system and an open main chain, connecting peer to peer network and consensus mechanism from the virtual world to reality. Traditional blockchain forgo Availability over Consistency and Partition Tolerance, however Ruff enabled Availability through the combination of Edge Computing and blockchain, making Availability available, and thus meeting the requirements of elastic real-time requirements.

WEBSITE | TWITTER | REDDIT

MEME