Anyone ever think about this current Crypto Crash with an eye on ICO investments?
What I mean is, everyone is coming out about the current crash and their own ideas as to why it is happening but truthfully, no one is really explaining any true points of contention other than fear and panic.
I have a potential theory about this alleged crypto crash and right now, more than ever, I would love to see some comments toward your thoughts about this theory.
My thought is this...
Most folks who have invested in cryptos in the past year or two have learned about the major profit potentials in ICO investments.
The ICO market is absolutely flooded right now.
More and more individuals are taking their crypto, turning Alt Coins back to ETH or BTC, and sending it to ICO sales which to my understanding temporarily takes your crypto out of the market cap equation.
IF (big IF) true, would such activities make the market appear to be much lower than what it really is? Short answer--YES.
This means, the move of crypto in ICO's can be creating a false perception of a bit of reality toward true capital within the crypto market especially when one considers how much money is flowing into ICO's today.
And, lets face it, most who invest in ICO's do not do so for the technological elements within the ICO proposals but rather do so for economic investment purposes. So, what do these individuals do once the ICO sale end and the ICO hits the exchanges? They take their profits and often put same back in their own fiat or re-invest back into other ICO's which inevitably would keep the crypto market cap at a stagnant position or a continued dip.
It is very likely I am wrong on this theory however, it is just something I have yet to see anyone discuss to date during this volatile period in crypto-currencies.
Love to hear your thoughts....
