Good Morning/Evening Steemians,
Ethereum's price has fallen overnight from a high of more than $400 USD to about $300 USD, though it has gained some value in the last hour or so to sit at $336 USD when I last checked. So why has the value of Ethereum dropped so much in the matter of hours?
Credit: Google (Labelled for Reuse)
It has to do with new ICO that started last night for a decentralized app called "Status" which is built on the Ethereum blockchain. As soon as the sale started there was a frenzy to get hold of it's token which led to the network getting congested and not everybody who paid for the token received the token.
Because of this frenzy, just too many transactions were sent to the smart contract address which caused the network to crash. A lot of transaction apparently failed as well. Now since the transactions were taking place on the Ethereum network and it crashed, a lot of Exchanges including Coinbase, Shapeshift and Bitfinex halted the Ethereum transactions. Because of this halt people no new money was coming through for Ethereum while the holders of Ethereum may have got weary and started to sell it causing this huge drop in value.
Now since the price has started to rise again, I think the exchanges have removed the halt to Ethereum trading. So this is your buying opportunity if you want to get into Ethereum as it's value is going to go quite high still. Some people are even speculating for it's price to go as high as a $1000 USD by the end of this year. So that'd mean 3 times profit on your investment.
Steem On!
