Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Ethereum Plunges 20% on Reports that ICO Investors Are Cashing Out

Published 08/14/2018, 12:19 AM
Updated 08/14/2018, 12:19 AM
© Reuters.  Ethereum plunged 20%, while Ripple and Litecoin were also down more than 13%

© Reuters. Ethereum plunged 20%, while Ripple and Litecoin were also down more than 13%

Investing.com – Ethereum plunged 20%, while Ripple and Litecoin were also down more than 13% on Tuesday on reports that investors who bought Ethereum to participate in initial coin offerings (ICOs) are cashing out to cover expenses.

Ethereum tumbled 20.7% to $266.4 at 12:20AM ET (04:20 GMT) on the Bitifinex exchange.     

(Bitcoin) was down 6.4% to $5,971.0 on the Bitifinex exchange.     

Ripple fell 14.0% to $0.26296 in the last 24 hours on the Poloniex exchange, while Litecoin plunged 13.1% to $52.296. 

ICOs usins the Ethereum blockchain were one of the major catalysts for pushing Ethereum above the $1,000 mark earlier this year, Bloomberg reported on Monday, noting that investors who bought the digital coin to participate in those ICOs are now cashing out to cover expenses amid concerns that cryptocurrency bear market would continue.

“These startups are raising a lot of funds but they don’t have treasury management or enough cash management experience, so they’re selling too early and causing a lot of pressure in the market,” said Biswa Das from cryptocurrency quantitative hedge fund BloomWater Capital. “It was fine last year but right now the the market is so fragile that it causes a lot of pressure.”

Ethereum is currently trading at an 9-month price low, hitting below the $300 price point last seen in early November and is now down about 60% this year, but investors are probably not done selling the digital coin, according to Das. “The pain is probably not over,” he said.

Cryptocurrency prices were also under pressure last week on reports that the U.S. Securities and Exchanges (SEC) has delayed the decision on whether to allow the fund from VanEck Associates Corp and Solid Partners Inc to list by the end of September. An initial deadline was due to expire this week.

Latest comments

Worth exactly 0
Yeah yeah thatu0027s what you always say
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.