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Ethereum ICOs have sold most of their tokens for profit, according to study

The cryptocurrency market has been in abatement since January, but it appears blockchain startups are still profiting big. Indeed, new data suggests Ethereum-based antecedent coin offerings (ICOs) are sitting on $830 actor in affluence – that is admitting having already sold almost as much ETH as they initially raised.

According to data from BitMEX Research, blockchain startups raised a total of $5,463 actor worth of Ethereum ETH (approximately 15 actor ETH) in ICOs by September 2018. Interestingly, the sum almost matches the total amount of ETH these companies sold during the same period – $5,452 actor (or 11.3 actor ETH).

The data about shows that most blockchain startups sold their ETH at a value higher than initially raised. This is also what made it accessible to secure the funds initially raised (in terms of dollars), but also keep a huge abundance trove of Ether in reserve.

BitMEX research, Figure 1.
(Source: Ethereum Blockchain, BitMEX Research, TokenAnalyst, Token Data, Price data from Etherscan)

Indeed, it would appear that ICOs sold much of their Ethereum before the price alone 85 percent, from $1,400 last December to $230 in September 2018.

As a result, ICOs have accomplished profits of $727 million, while still application $830 actor worth of Ethereum (3.9 actor ETH) in reserves. It would seem the ETH being held is pure profit for the ICOs.

BitMEX research, Figure 2.
(Source: Ethereum Blockchain, BitMEX Research, TokenAnalyst, Token Data, Price data from Etherscan)

BitMEX points out the allegation are cogent in two ways. On the one hand, it shows that most ICOs don’t engage in “panic selling” as a action to off-load funds. On the other, it highlights how easy it is for blockchain startups to run ICOs for quick cash rewards.

As the value of Ethereum charcoal low and panic affairs isn’t a action ICOs seem to endorse, it is absurd that we will see any ICOs sell more of their ETH funds for the time being.

However, even if these ICOs did decide to off-load all 3.9 actor Ether that they currently hold, it’s absurd that this amount would be large enough to abnormally impact the price of Ethereum – given that there is 102 actor ETH currently in circulation.

Published October 1, 2018 — 13:03 UTC

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