1/ ETH reached 18-month low today and there is this narrative that the price of is dropping because ICOs are liquidating their treasuries. Well, it’s completely wrong. Let’s look at the data!

https://t.co/yG0vecC7VT

2/ The sum of ETH holdings of ICO treasuries is now a little over 3.57M ETH (3.5% of supply). In April, the treasuries held 4.65 million ETH (4.5% of supply) indicating that they likely liquidated (or moved) about 23% since then.
3/ Despite the decline in ETH price, the selloff hasn’t been as drastic as many analysts anticipated. In the past two months, treasuries of projects that held ICOs liquidated (or moved) 172,00 ETH, or ~4.6% of total holdings.
4/ The most aggressive sellers were Status, district0x and Tierion (in order), which sold (or moved) nearly 55,000 ETH combined since September 9. Out of the 57 companies I tracked, 50% didn’t touch any of the ETH in their treasuries.
5/ At least 11 ICOs currently have a smaller “market capitalization” than the amount that they hold in their ETH treasuries alone (see table below).
6/ Seven companies hold more than 200k ETH (not including Polkadot, which has funds stuck in the Parity bug.)
7/ In aggregate, ICO-related project treasuries have moved or liquidated 64% of the amount that they initially raised. In other words, they are still holding 36% of the initially raised amounts (with ~5% stuck in the Parity bug.)
8/ As of September, ICOs had moved or liquidated 62%, which means that in the last two months, only 2% of the total raised ETH was liquidated. Therefore, the popular narrative that ICOs have been actively selling their ETH reserves is inaccurate.
9/ One can assume that most of the projects have significant enough cash reserves that they haven’t had to sell cryptocurrency reserves yet. And since the price of ETH continues to drop, it’s safe to assume that projects won’t sell ETH until they absolutely must.
10/ But since the majority of ICOs aren’t generating any meaningful revenue yet, they will eventually be forced to start selling ETH to cover operating expenses. When that happens or when the SEC forces ICOs to liquidate, Ethereum is likely to experience true capitulation.

More from Crypto

A primer on how to use @coingecko for your crypto data/research/trading needs.

Share it with a friend who needs it!

1/ Getting started with crypto and want to check prices/projects? https://t.co/LFnk4vukxj has info on just about every crypto you'll need :)


2/ Search over 6000+ cryptocurrencies available on the market. You can see what's trending in the space as well.

Researching by categories? Filter (left side) -> Select categories -> DeFi, DOT ecosystem, Exchange-based tokens, NFTs - anything!


3/ Lets say you're looking at #Bitcoin
https://t.co/g205lj03pG

At a glance you get:
- Price
- Mkt Capitalization (valuation)
- Circulating/Total supply
- 24h trading volume
- Links to websites, social media, block explorers
- Calculator

Next - check valuation?


4/ Market cap is used to rank coins, and we'll show you how its calculated - Hover over Circulating Supply (?) for breakdown.

Note: used @chainlink as example here - https://t.co/Jc46fe79Ag

While MC is important also consider product fit, narrative, team, community etc.


5/ If you're trading on AMMs like @Uniswap or @SushiSwap, you can copy the contract address directly to your clipboard.

Using @metamask_io? Add the token directly so it shows as one of the "Assets" that you own in the wallet.

See: https://t.co/94XihMf5oz

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