Crashes and turmoil around the fact that cryptocurrencies have become "common currency" in the course of 2018, it is considered that part of the concerns have their origin in an unusual growth in 2017, although the causes are not known in detail, Certain is the fall of August 14, 2018, and it is worth it to unravel several broader reasons. The Ethereum , the second best-known virtual currency, does not escape the rules of the market .
First, it is worth mentioning that the low price situation is an important test for Ether (a token associated with the Ethereum Foundation , considered the second cryptocurrency because of its transaction volume), as it goes through a downward spiral with few signs of change.
Ether , the preferred platform in the choice of most developers based on blockchain technology , has dropped almost 17 percent in one day, it has wiped out billions of dollars in paper value (crypto), and the market in low in cryptocurrencies continues to attract markets to the south. The fall establishes a mark, and it is the first time that the price of an ether fell so low of its value in a year: to the date it is worth 266 dollars, while on August 14, 2017 it was worth 304 dollars.
A constant drop experienced the token since early May 2018 whose value was $ 808, and was the parameter in other ICO projects , which disappeared promptly to observe the reduction in value not only in ether , but also in most of existing tokens . You can see on the website coinmarketcap.com, on the morning of August 14, 2018, the descent of the best 100 tokens in the world, minus two, in the last 24 hours. Several lost between 10 and 25 percent of their value, bitcoin also fell below 6 thousand dollars, taking into account the overcoming of the barrier of 8 thousand in July of the same year.
Enter rounds by venture capital funds in a period of bonanza, with exaggerations and maximum values, has different urgencies to do so at a time of "low tide" of the market
Members of the crypto community have generated a mixed debate in reference to their fall, all agree that the token had been considered visionary, an improvement in bitcoin that gives developers a platform on which to base themselves, whether decentralized applications, decentralized systems or more. , but this has not been reflected in the withdrawal of prices for months.
Two founders were interviewed by the news portal TechCrunch and expressed their conviction, regarding the ether , by stating: " You need to find some price stability ", for the purposes of a search focused on the product and not on speculation . Both interviewees and many others made a symbolic sale long ago of ether and bitcoin in exchange for fiat money. If such a sale was in 2017 they would have more cash than they would get on August 14, 2018.
The idea of consistency is not dissipated in a day by those who share professional cryptography , proof of this are investors, such as the case of Kenrick Drijkoningen (seeking to raise funds for 10 million dollars for LuneX), from the venture capital firm Golden Gate Ventures based in Singapore. Drijkoningen had expressed that entering the rounds for funds in a period of bonanza with exaggerations and maximum values: an ether was worth $ 1400 in January 2018, has different urgencies to do so at a time of "low tide" of the market. Even several venture capital firms held for a long time, stability is a good healthy parameter to the ecosystem.
There are also pessimistic voices, especially in investors , for them the feeling is that with the fall of the ICO financing boom, driven in large part by the increase in Ethereum, there may be fewer incentives to maintain some interest in the cryptocurrency in general within the market. On the other hand, the intrinsic value of bitcoin as an immutable and decentralized ledger acts more attractive and powerful in view of the perceptible and centralized mutability offered by the Ethereum platform .
In the long term, the Ethereum would face another problem, according to an anonymous investor, in reference to the promise to launch decentralized applications backed by the token . Crypto Kitties , was a success at the beginning of 2018, but it has vanished in front of the advance of the competition like Bitcoin's Lightning Network adding nodes and known applications with the name of LApps, being able to operate in a similar way and taking advantage of the Bitcoin ledger.
The rise and fall of values is the rule of the markets, and the activity of the cryptocurrencies in it is still very precocious ; however, this is really a litmus test for the Ether and Ethereum , saving speculation, it is worth seeing where the market turns.