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BitMEX study: Ethereum price decline was not caused by ICO panic selling

BitMEX study: Ethereum price decline was not caused by ICO panic selling

Home News BitMEX study: Ethereum decline was not due to ICO caused panic selling

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Marcus Misiak –
02.10.2018

BitMEX Research yesterday released a report that focused on the analysis of the Ethereum holdings of ICO projects. BitMEX comes to the conclusion that the course is due to the decrease of ETH to around 75 per cent more on a market correction, than to panic sales of the ICO company. The ICO companies have a surprising run-in way, mostly profits, in spite of the price correction in 2018.

The strong Ethereum-rate losses, left many analysts in the past few months to speculate whether the sell-off of Ethereum are panicked by numerous ICO-projects. Last published Diar in the beginning of September a report by the company determines that ICO-companies still hold more than 38 percent of their occupied ETH, a total of 3,744 million, ETH, around 3.7% of the total Ether Supply. On the basis of its analysts speculated that the price of Ethereum could fall further if ICOs are liquidating their remaining ETH-stocks.

The published study emphasizes that the most ICOs have liquidated their holdings at a time when the rate of ETH was still high enough to generate profits. Overall, viewed BitMEX 222 ICO-projects, which took a total of a value of 5.5 billion US dollars (15.1 million ETH). This ICOs according to the study, only 3.8 million Ethereum.

At the macroeconomic level, it is stated in the study that a majority of the ICO projects “should be fairly self-confident”. With regard to the unrealized gains and losses, the ICOs have mostly achieved net profits. While this may be initially surprising, however, as BitMEX Research, have erlitte many projects prior to the price rally by the end of 2017, their ETH-stocks are collected, wherein “individual projects under certain circumstances to significant losses”.

In the report, BitMEX also shows a diagram in which the Top win lists 20 ICO-projects according to their net due to the change in the price of ETH. Accordingly, the Top winners are (on the basis of the net profit) Filecoin, Golem, DigixDAO, a Singular DTV and EOS. Filecoin has by far the largest gain of about 135 million USD.

The biggest loser Sirin Labs, Fusion, Status, Polkadot and Atonomi are:

In addition, BitMEX comes to the realization that the recent fall of the ETH cannot be explained solely on the speculative sell-off of the ETH by the ICO projects. It was therefore more likely that ETH is decreased by around 75 percent, because the entire market has experienced a strong correction:

We come to the conclusion that the ICO Treasury accounts come to be much less with the price of Ethereum in contact than many might have thought. What does this mean for the Ethereum-course, is unclear, but we believe that we have shown that the ‘panic selling-Proposition’ is either wrong or only in a lesser extent has occurred.

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