ICOs Raked in $13 Billion Despite 90% ETH Price Drop, New Research Finds

ICOs made almost $13 billion in profits from their token sales despite the 2018 cryptocurrency bear market, new research from BitMEX reveals.


BitMEX: ICO Issuers ‘Gave Themselves $24 Billion’

Published January 16, the third instalment of the trading platform’s dedicated series on ICO statistics also suggests ICO teams “gave to themselves” tokens worth over $24 billion at the time of issuance.

“Today this figure has fallen to around US$5 billion, with the difference primarily being caused by a fall in the market value of the tokens, alongside ($1.5 billion) of transfers away from team address clusters (Possibly disposals),” BitMEX summarizes.

In total, combined with findings from the second installment in October 2018, a figure of $12.8 billion is now circulating as the total profit wrought from the ICO craze of the past two years.

While some teams have since launched products and demonstrated application of funds, many have yet to do so, staying dormant since their token sales.

As Bitcoinist reported, ICOs that raised hundreds of millions of dollars each faced a highly volatile market over the last twelve months with over 70 percent now underwater.

Others have since fallen foul of the law, with Paragon and Airfox both required to pay back huge sums to investors along with fines for flouting US securities regulations.

2020 ICO Renaissance?

Responding to the BitMEX findings, Blockstream CEO and Hashcash inventor Adam Back thus appeared unsurprised.

“[W]hen people start startups, they take usually a paycut (versus a) big (company), so modest pay, relatively,” he commented on Twitter.

[A]and take illiquid stock, that is not tradeable (sic) until they achieve technology and market success. [A]m I reading it right that ICOs just dipped into investor capital (and) gave it to themselves?

BitMEX CEO Arthur Hayes was also palpably nonplussed.

“When you create poo poo out of thin air, gravity is a bitch,” he tweeted.

Ethereum (ETH) 00, the major network used to issue ICO tokens, currently trades around $120, equating to a drop of over 90 percent versus its all-time highs.

Earlier this month, Hayes suggested that both ETH and the ICO market could see a resurgence within the next eighteen months.

What do you think about BitMEX’s new findings? Let us know in the comments below!


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Source: Blockchain

XRP Overtakes Ethereum Despite Looming ‘Constantinople’ Upgrade

Ethereum constantinople

XRP has reclaimed the position of the second largest cryptocurrency by market cap from ETH just days before Ethereum’s ‘Constantinople’ hard-fork upgrade. 


Pre-Fork Drop

On January 16th, Ethereum is scheduled to undergo a network-wide system update called ‘Constantinople’. Among other things, the implementation of the upgrade will reduce the block reward from 3 ETH/block to 2 ETH/block.

Days before the event, however, Ethereum’s (ETH) 00 price experienced a notable decline.

In a matter of minutes, ETH price dropped by about 8 percent.

The movement caused ETH to fall behind Ripple (XRP), which reclaimed its spot as the second largest cryptocurrency by means of market capitalization, less than two weeks after Ethereum regained the number two spot from XRP.

In fact, the two have been neck and neck over the past few months in cryptocurrency market cap rankings.

XRP 00 also experienced a decrease around the same time, but the cryptocurrency experienced a relatively smaller loss of 2.5 percent against the USD.

Ethereum’s ‘Constantinople’

Constantinople is a system upgrade scheduled for implementation at block 7,080,000. Given the current average block time, the event should take place on January 16th, 2019.

One of the most discussed changes that the upgrade will cause is the reduction of block reward from the current 3 ETH/block to 2 ETH/block. This is also referred to as the “thirdening.” It’s the second time Ethereum’s block rewards have been reduced.

The first one was called “Byzantium” and it took place on October 16th, 2017. Back then, ETH surged by about 6 percent during the day, followed by the cryptocurrency’s late 2017 rally to an all-time high of about $1,400.

In total, the upgrade will integrate 5 Ethereum Improvement Proposals (EIPs), which are geared toward tackling cost, speed, functionality, and mining issues.

Support For ‘Constantinople’

Several cryptocurrency exchanges have announced their support for the upcoming network upgrade.

Binance, HitBTC, Huobi, Bittrex, OKEx, CEX.IO, Cryptopia, and Poloniex, have all announced that they will support the Constantinople hard-fork.

Most of them advise users to give sufficient time for their deposits to be processed prior to the upgrade.

At the time of writing this, Gemini, Coinbase, and Bitfinex, haven’t yet declared their support for the upgrade.

What do you think about Constantinople and its impact on Ethereum? Don’t hesitate to let us know in the comments below!


Images courtesy of Shutterstock; TradingView

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Source: Blockchain

‘Ethereum 2.0’ PoS Blockchain Aims to Cut Energy Use by 99%

Ethereum not only hopes to maintain its position as one of the world’s largest cryptocurrencies but also to achieve supremacy by becoming more energy efficient. Ethereum leadership plans to accomplish this objective by minimizing blockchain energy consumption by 99 percent.


‘Ethereum 2.0’ PoS Blockchain Being Built From Scratch

Vitalik Buterin, inventor and co-founder of Ethereum, started 2019 by regaining Ethereum’s position as the second largest cryptocurrency with a market capitalization of over USD 15.5 billion.

However, Buterin admits that Ethereum mining now purportedly consumes more electricity than Iceland. Thus, to sustain or enhance its competitive advantage, Ethereum is aiming to reduce energy consumption by scraping its blockchain based on proof-of-work (PoW) and instead building an entirely new blockchain based on the proof-of-stake (PoS) algorithm.

Vitalik Buterin

In this regard, Vitalik says, “latest ETH update should complete transactions using just 1% of the energy consumed today by replacing PoW with PoS.”

Testnet in 2019? Don’t Hold Your Breath

Peter Fairley, a contributor editor for Spectrum IEEE, writes that energy reduction has been part of Buterin’s vision from the start, concurring that PoW consumes energy excessively.

Buterin envisions that future blockchains will be based on PoS and sharding. Sharding is a database-partitioning technique that involves separating huge databases into smaller, faster and more manageable components, known as data shards.

On December 10, 2018, Buterin tweeted:

Blockchains of the future with proof of stake and sharding will be thousands of times more efficient, and so the efficiency sacrifices of putting things on a chain will become more and more acceptable.

The Ethereum devs decided on the two-blockchain solution in June 2018 dubbed ‘Ethereum 2.0.’ Ethereum contributor Paul Hauner, a co-founder of Australian cybersecurity and blockchain-development firm Sigma Prime, and heads the development of the ‘Lighthouse’ Ethereum 2.0 software client, that uses the Rust code. He expects this app and others to be running PoS on testnets in early 2019.

But due to multiple delays in the past and the complexity of the task at hand, may expect this new radical shift to Ethereum 2.0 to take time and it’ll likely not see the light of day in 2019.

“In October 2017, when mining time had already nearly doubled to 30 seconds, the Ethereum team reset the clock, delaying PoW’s doomsday by about 12 months,” Fairley notes. “And they will likely hit snooze again shortly.”

Weiss Ratings echoed this sentiment, saying they won’t be holding their breath, at least not in 2019.

Do you think a PoS-based blockchain will be capable of reducing energy consumption costs by about 99 percent? Let us know in the comments below.

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Source: Blockchain

Ethereum ICO Treasury Withdrawals Hit 2018 High in December

Ethereum ETH withdrawals

Projects which had their initial coin offerings (ICOs) on the blockchain of Ethereum have quickly liquidated their ETH holdings since June of 2018. Treasury withdrawals hit a year-high in December with more than 420,000 ETH being liquidated.


420,000 Ethereum Sold in December

Upwards of 420,000 ETH has been liquidated from ICO treasuries so far in December, making the month the largest withdrawal period this year according to Diar. 

The market research firm also reveals some statistics for 2018’s prolonged bear market. In January, the total amount of ETH held in ICO treasuries was 4,623,148. Currently, this number has been reduced to 3,052,168 ETH. The average monthly withdrawal is 2.45 percent while December has seen 12.20 percent of Ether withdrawn from treasuries or a total of 423,816 ETH so far.

November was also a month of a massive selloff as over 290,000 ETH were liquidated, led by Tezos’ 82K ETH drawdown.

Sold at Year-Low

Almost half of the total withdrawn amount of ETH in December can be attributed to one single project – Filecoin. It sold off all of its holdings of 216,906 ETH.

Another project which liquidated almost all of its ETH holdings was Substratum, withdrawing 8,931 ETH in December.

Kyber, on the other hand, withdrew 66,454 ETH and is currently left with a little over 3,000 ETH in the treasury. The reasons for the selloff are undisclosed.

Looking at ETH’s 00 yearly price chart, however, shows that the third quarter has been particularly unforgiving for the cryptocurrency. In December, it fell down to as little as $83, which is almost 95 percent down from its all-time high values at the beginning of the year.

What do you think of Ethereum’s peaking treasury withdrawals? Don’t hesitate to let us know in the comments below!


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Source: Blockchain

Vitalik Buterin: Bitcoin is ‘Genuinely Cool Tech,’ Bitcoin SV Is ‘Pure Dumpster Fire’

dumpster fire

Bitcoin Cash ‘Satoshi’s Vision’ (BSV), the new hard fork of Bitcoin Cash (BCH), is a “pure dumpster fire,” Ethereum co-founder Vitalik Buterin has said.


Cool Vs. Dumpster Hot Air

In a Twitter discussion with cryptocurrency commentator and entrepreneur Tuur Demeester December 25, Buterin debated the pros and cons of two algorithms used by many cryptocurrencies: Proof-of-Work (PoW) and Proof-of-Stake (PoS).

As part of its long-term upgrade schedule, Ethereum plans to transfer from PoW to PoS, with Buterin saying he “doesn’t believe” in the former.

Vitalik Buterin

BSV, which plans to use giant block sizes to solve scaling difficulties ‘on chain,’ has faced technical and publicity hurdles since it came into being on November 15.

The altcoin unwittingly became collateral damage from the debate after an advocate requested Buterin’s opinion on it.

The user had claimed the scaling plans from Bitcoin (BTC) developers – specifically ‘off-chain’ scaling via the Lightning Network, was a “joke.”

Buterin slickly disagreed.

“I have my disagreements with the bitcoin roadmap, PoW, etc but they’re trying to do something that’s genuinely cool tech,” he responded.

“BSV is a pure dumpster fire.”

Traders Stay Warm This Christmas

In a curious move, the BSV proponent did not criticize Buterin for his negative perspective, something which has become commonplace among the coin’s better-known activists.

Craig Wright, the self-proclaimed ‘Satoshi Nakamoto,’ has continued to earn a notorious reputation for his lack of tolerance of BSV 00 naysayers.

As Bitcoinist reported, an apparent spat with BCH advocate Roger Ver prior to the hard fork saw Wright pen an email calling Ver his “enemy.”

“Have a nice life. You will now discover me when pissed off,” he wrote.

BCH, BSV and ETH have meanwhile all staged something of an unlikely recovery over the past week. BCH had led the rally, more than doubling in value to hit more than $200 before correcting nearer to $170. ETH managed $160 from a low of $73.

Do you agree with Vitalik Buterin’s comments? Let us know in the comments below!


Images courtesy of Shutterstock, Bitcoinist archives

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Source: Blockchain

Ethereum Price Analysis: Ether Burns to a Crisp

ethereum price eth price fire

Ethereum has turned into an unattended dumpster fire. Let’s take a look at the Ethereum price analysis and see what it will take to turn the price around.


Ethereum Price: Market Overview

2018 has been a rough year for Ethereum price 00 and at the moment it doesn’t look like the situation will improve. Of the top 5 cryptocurrencies, ETH price disintegration has been nothing short of harrowing and with the ICO market being declared dead by a growing number of analysts.

Meanwhile, the SEC in constant pursuit of what it deems to be unregistered securities sales and illegal marketing has put a ton of pressure keeping it from rebounding from its current lows.

ETH-USD Shorts

Additional pressure is also coming from a record high number of shorts (400,000) betting against an Ether recovery and this seems to be pinning ETH price below $95. A break above $95 – $100 could cause some shorts to cover and the price could extend to $115 to $125.

However, it seems a strong Bitcoin led recovery is the only catalyst that would set this sort of action into motion.

ETH-USD Longs

Here is the ETH/USD longs chart.

4 HR Chart

ETH had been trading in a tightening range of $83 to $103 but a decline in volume and pattern of lower highs hinted that ETH price would break down over the short-term.

ETH under $85 is a problem and below $83 – $80 could be catastrophic. The pattern of lower highs remains and ETH’s oversold bounces on the Stoch and RSI are diminishing in the amount of lost ground reclaimed.

Longs have 300,000 contracts open and a drop below $80 could accelerate ETH losses and the considerable support gap below $80 could lead to ETH price dropping to $60, if not to $41.

1HR Chart

Ethereum price dropped supports at $89, $87.60, $85.90. Now $83 – $80 appears to be the last support before a steep fall. Ambitious traders should either wait patiently for a bullish pattern to present itself or attempt to catch and oversold bounce if ETH drops below $83.

But setting a tight stop loss would be wise in order to protect against the possibility of a steep decline below $80.

[Disclaimer: The views expressed in this article are not intended as investment advice. Market data is provided by Bitfinex. The charts for analysis are provided by TradingView.]

Where do you think Ethereum price will go over the short-term? Share your thoughts in the comments below!


Images courtesy of Shutterstock, Trading View. Market data sourced from Coinbase and Bitfinex.

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Source: Blockchain