Today we will talk not only about the recent rise in prices on the market, but also about a long-existing problem: Ethereum and ICO.
Finally, prices began to rise, in the last 24 hours Bitcoin rose by 3%, and the altcoins followed him. However, this respite in the market is not a clear sign of a reversal. The growth of some altcoins by 20-30% after huge losses is insignificant, and capitalization in the top trend of them is lower than we would like to see. Moreover, most of the volume on the market is currently unreal, namely, real volumes and organic growth is not enough for a long-term uptrend.
The market managed to keep capitalization at a key level of $ 100 billion. After the correction, which we saw, it does not take much effort to raise the market by 10%.
The dominance of Bitcoin did not reach the September peak, it is noteworthy that we have already seen this development twice before the Altcoin season began on the market. Despite the current situation, I would not be in a hurry to talk about a possible Altcoin rally in the near future.
Now the price of Bitcoin has broken through the inclined resistance level, which has been forming since the end of November. Interestingly, for the first time in a long time, impressive volumes have passed on Coinbase. The new support line has already been tested twice and, judging by the volumes, people are not taking their own profits. Thus, if the candle on the hourly chart closes above $ 3,600, this will give the market confidence. Judging by the daily chart, I think that we are waiting for a correction to a 50-day moving average, which is falling, respectively, the price can rise to $ 4,300- $ 4,500, testing previous resistance levels.
According to the latest data, more than 400,000 ETH were withdrawn from the wallets of ICO teams. (source)
It’s time to talk about a long-standing problem, which has recently become more obvious not only for the ICOs themselves, but for the entire crypto community as a whole.
A year and a half ago, when I was just starting to study ICO, I realized that they were raising funds in a digital asset, which at that time was in demand and was growing in price. Many projects were happy to conduct an ICO, often without any legislative regulation, and participants were happy to invest. At the same time, after the ICO, the assessment of the collected funds could double or triple.
I always wondered what would happen when Ethereum stopped growing. It seemed to me that many of them would conduct OTC transactions and acquire more stable assets. However, I was wrong, and now the projects worry two things: can Ethereum fall below the price at which they conducted sales rounds and whether their projects comply with legal requirements so as not to return the collected funds to investors.
It should be noted that the earlier projects entered the market, the greater their stock relative to the price of ETH. However, for all projects, it’s fair that they need to take care of the sufficient balance in US dollars that may be required to make refunds in case of non-compliance with government requirements. If ETH continues to remain at current levels for some time, then this will negatively affect a large number of ICOs and this is their big problem. Thus, the market needs a more stable model of