Troubles aren’t over for Ethereum warns Li Xi, a partner at Singapore based investment firm H.Capital. Li warns of a massive Ethereum dump in the near future. Li Xi made the statement in the first-ever BiBox global meetup conducted on 8th September in Singapore. The meetup was attended by 300 people.
According to Li Xi, there are 3 indicators that confirm the fact that a major Ethereum dump is imminent. Firstly, more than 20,000 ETH is being generated through mining daily compared with the limited size of Bitcoin. Secondly, ICOs (Initial Coin Offerings) are getting out of trend fast, which was one of the biggest reason for Ethereum’s price to increase. Thirdly, more than 50% of ETH raised through ICOs haven’t been sold off yet.
Li Xi cautioned,
“Bitcoin price is still very strong compared to ETH which has dropped 80% from its all-time high.Firstly, every day, there are 20,000 ETH created, as opposed to limited supply like BTC. Secondly, the ICO fever has subsided. Thirdly, more than 50% of ETH raised in ICOs have not been sold into fiat yet. In the future, we may see a massive dump.”
BiBox panel discussion
Ethereum price has been constantly declining since May 2018. One of the major reason for such a decline is ICOs. ICOs raised millions of dollars in Ethereum, pushing the price of Ethereum up. But as ICOs have started to lose their appeal to investors, Ethereum now has started to show a downtrend. Major ICO projects have decided to convert their remaining Ethereum to fiat.
Edit: Corrected spelling mistake in the last paragraph from “loose there” to “lose their“. And Added Tweet by Kevin Rooke.
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