The Monetha (MTH) project is just months away from releasing its app. But it is also an example of how ICOs end up using their Ethereum holdings for funding. In the end, the crypto coins must be sold for cash to fuel development.
Recently, the Monetha wallet saw a movement of coins to another address. While some ICOs keep the coins unmoved, the Monetha wallet apparently sent 1,000 ETH between addresses.
What is more curious is that the coins moved between a few addresses first. The 1,000 ETH moved to a wallet with otherwise zero ETH balance. The coins stayed there only for a couple of hours before heading for another outbound transaction.
Then, for two more hours, they were moved to an address with just two transactions. In the end, the funds were pooled on this address:
0xFa52274DD61E1643d2205169732f29114BC240b3
Checks indicate that this is a Kraken smart contract address - strongly suggesting that the Monetha project earmarked the 1,000 ETH for selling. Kraken is an European exchange that is one of the few places offering a fiat off-ramp for many crypto coins.
An ICO cashing out is not necessarily a bad thing. The 1,000 ETH, with a current market price of around $396,000, may go toward covering operating costs. Cashing out too much, or all of the amount, as well as too little, may be bad indicators. Some ICOs sit on untouched balances, and some consider this an indicator for a stalled project.
While some ICOs hardly appreciate, others are a worthy investment of Ethereum. In terms of ETH prices, two of the most phenomenal ICOs are NEO and Populous. NEO has had more than 4,800% return on investment against the growth of ETH. In the case of Populous, the returns of the coin versus holding ETH are more than 11,000%.
Ethereum itself remains depressed, with a market price sliding even below $350 in recent days. The token is still seen as a utility coin, which, however, is indeed indispensable to the current blockchain infrastructure.
This article appeared first on Cryptovest