The crypto markets have been in free-fall for more than a month. The total market capitalization of all cryptocurrencies dropped from a three-month high of $ 470 billion to just under $ 270 billion.
Large cryptocurrencies such as Ethereum, Bitcoin Cash and EOS all recorded losses in the double-digit range. Ethereum fell below the supportive $ 500 mark and is currently priced at $ 472.
There are a few reasons for this price loss. One is the attack on a South Korean stock exchange, another is the concern that some ICO’s sell their funds.
South Korean stock market hack leads to Bitcoin crash
Coinrail, one of the world’s 100 most important crypto currency exchanges, reported a digital robbery with more than $ 50 million in loot. Immediately after the report was released, Bitcoin’s price fell more than 10% and recorded its lowest price in two months.
According to a report by Quartz, the hack included a relatively unknown cryptocurrency, NPXS, that was stolen from users’ possessions. The official statement, which was released by the stock exchange, also announced that they will freeze all transactions until all relevant investigations are completed.
While the platform has not yet calculated or announced the exact amount, an expert has said that about $ 50 million has been stolen.
ICOs sell accumulated seed capital
Given that the entire crypto industry is highly speculative, it is not surprising to see an interesting correlation between the ICO industry and overall market performance.
According to NewsBTC, this fact is illustrated by the EOS token sale, which has recently generated tons of hype:
“… as a previous significant Ethereum price drop has occurred due to EOS. This alternative currency raised money during a one-year crowdsale. This has put a considerable amount of money into the process. In order to cover ongoing operating expenses, the amounts were converted from Ethereum to Fiat currency. This is only normal, as all ICO projects have the same processes in this regard. “
As ironic as it sounds, there is only speculative evidence showing the correlation between different ICOs selling their monies and the overall performance of the cryptocurrency market. However, with so many successful ICOs selling part of their paid-up operating and marketing costs, some market pressure is triggered, leading to a drop in crypto prices.
Marko Vidrih @cryptomarks
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