Is This Ethereum ICO Project To Blame For ETH’s Price Slump?

2 months ago

The Ethereum terms has fallen by astir -25% since its mid-March highest astatine astir $4,100 and is presently trading conscionable supra $3,000. While this nonaccomplishment is successful enactment with the broader marketplace inclination and successful peculiar Bitcoin’s terms driblet of astir -22% successful the aforesaid time, determination could beryllium different crushed for ETH’s terms slump, which seems plausible since the German government lone sells BTC and not ETH, and Mt. Gox doesn’t ain immoderate ETH either. But what if Ethereum has its precise ain “Mt. Gox“?

Is The Ethereum Price Suppressed By Golem?

Chinese crypto writer Colin Wu (@WuBlockchain) archetypal reported via X connected the important movements of ETH funds by the Golem project, an Ethereum-based task that conducted a notable Initial Coin Offering (ICO) successful 2016. According to Wu, “Golem, a task that raised 820,000 ETH successful ICO successful 2016, has transferred 36,000 ETH to Binance, Coinbase, Bitfinex, etc. successful the past 37 days, worthy astir $115 million.”

On-chain investigation work Lookonchain further revealed the grade of these transactions via X: “Golem has sold 24,400 ETH ($72M) connected Binance, Coinbase and Bitfinex successful the past 3 days, and presently holds 127,634 ETH ($372M). Golem raised 820,000 ETH done ICO successful November 2016, erstwhile the terms of ETH was lone $10.2.”

The Golem ICO was an aboriginal and important lawsuit for the crypto manufacture which took spot successful November 2016. Golem aimed to make a decentralized supercomputer by harnessing the combined computing powerfulness of users’ machines, from idiosyncratic laptops to full information centers. The thought was to let users to rent retired their computing resources to others.

In its ICO, Golem raised astir 820,000 ETH, which was valued astatine astir $8 cardinal astatine the time, successful conscionable 29 minutes, becoming a awesome of the ICO bubble. This backing was expected to beryllium utilized to make the Golem network. Despite its ambitious goals, Golem’s marketplace relevance has importantly diminished, with its token present trading astatine conscionable $0.32 (#151 by marketplace cap), a stark diminution from its highest terms of $1.32 successful January 2018.

Harsh Criticism From Crypto Experts

Criticism has been vocal among manufacture leaders. Adam Cochran, a spouse astatine CEHV, expressed his displeasure via X: “Absolute bastards. Sat connected their ETH for ages doing nothing. And present we are successful the epoch of request for distributed compute and they can’t adjacent beryllium relevant.”

Similarly, Jimmy Ragosa, an advisor astatine Sismo, sarcastically remarked, “Yes, Golem has been dumping connected us. But, astatine least, they are utilizing these 100s of millions of dollars to physique captious scaling infra and wide adopted apps, right?”

Another position came from @based16z connected X, who speculated connected the rationale down Golem’s actions, “Say what you privation astir Golem, but they’re not precisely a gambler. For them to dump 700 cardinal dollars successful ETH aft 7 years, I presume they cognize something.”

How beardown the power of Golem income is connected the ETH terms remains axenic speculation. However, it seems wide that the changeless selling unit has astir apt played astatine slightest a definite relation successful the Ethereum terms slump. At property time, ETH traded astatine $3,049.