The crypto-markets are for more than a month in a free fall. The total market capitalization of all digital currencies, fell from a three-month high of 470 billion dollars to almost $ 270 billion.
Large crypto-currencies like Ethereum, Bitcoin, Cash and EOS have recorded all losses in the double-digit range. Ethereum fell under the supportive $500 Dollar mark and is currently at $472.
There are a few reasons for this price loss. One of the attack on a South Korean stock market would be another concern that some of the ICO’s sell their collected funds.
South Korean stock market Hack leading to Bitcoin Crash
Coinrail, one of the 100 most important crypto-currency exchanges in the world, announced a digital robbery with more than $ 50 million in loot. Directly after the publication of the report, the price of Bitcoin fell by over 10% and posted its lowest price in two months.
According to a report from Quartz, the Hack consisted of a relatively unknown Cryptocurrency, NPXS, which was stolen from the possession of the user. The official statement published by the stock exchange, also announced that they are freezing all transactions until all relevant investigations are completed.
While the platform has not calculated the exact amount still to be announced, said an expert, that approximately 50 million dollars were stolen.
ICOs sell the collected start-up capital
If you consider that the entire crypto industry is highly speculative, it is not surprising to see an interesting correlation between the ICO industry and the overall market performance.
According to NewsBTC this fact is due to the EOS-Token-of-sale is illustrated, which has generated lately, tons of Hype:
“… as a previous major Ethereum-price case, due to EOS has occurred. This alternative currency collected sale of money during a one-year-old Crowd. Thus, you have brought up a considerable amount of money in the process. To cover the ongoing operating costs, were converted to the amounts of Ethereum in Fiat currency. This is only normal, since all ICO projects have in this regard, the same processes.“
As ironic as it sounds, however, there is only speculative evidence to show the correlation between the different ICOs, the sale of your deposited funds, and the overall performance of the crypto currency market. However, since so many successful ICOs sell a portion of their funds for operating / marketing costs, is triggered a certain amount of market pressure leads to a decrease in the crypto prices.