Initial Coin Offerings (ICOs) have sold more than 202,000 eth in the past 30 days, with more than half of it, ◊119,000, sold in the past seven days.
Selling activity by ICOs appears to have picked up considerably recently, with numbers like ◊10,000 – ◊20,000 a day now more common.
Difficult to see what Hero is, but Status has been selling relentlessly for months. They sometime have hackathons and undertake quite a bit of eth development, but why Status likes fiat so much isn’t too clear.
Usually you’d have quarterly reports where projects that have publicly raised funds say what they are doing with the money and how things are going regarding user numbers and so on, or you have a token holders vote on say whether 28,000 eth should be liquidated.
ICOed projects, however, have generally failed to voluntarily provide such transparency, with the regulatory framework becoming more clear, but still somewhat hazy on the requirements of an ICO that has raised say $1 billion and one that has raise $5 million.
SEC has promised more clarity in the coming months. That’s to come from the division of corporate finance, which appears to be the “good” cop. So hopefully they’ll be able to hear this space whereby obviously some rules are required – such as quarterly or at least twice a year reports – but also flexibility is needed to take into account the different potential designs.
If a token holder, for example, has actual custody of the eth – such as in a proper DAO design – then any requirement should be minimal if applicable at all.
On the other hand, if custody is handed to someone else at say the sum of $10 million, then the cost of compliance with any requirements – including lawyers etc – should be no more than say $50k or $100k at most.
While if they’re raising say $200 million without yet quite having a product, then the whole book should apply, but even there certain unique features of tokens can be taken into account.
Like ownership of the token is by itself proof of ownership, so you don’t need a token holder’s registry to prevent ownership fraud. AML/KYC can be done by exchanges rather than token “issuers.”
ICOs are not the only ones selling or anywhere near it. Some 200,000 more eth than withdrawn has been sent to exchanges today according to data by Santiment, more than the entire sum of eth sold by ICOs for the whole month.
Ethereum’s velocity, moreover, has seen an uptrend recently, with considerable sums moving in the past few days and weeks. No where near the January levels of 20 million eth, but not too far at around ◊6 million moved in one day.
That’s the highest since February and has continued to remain relatively high since November 20th.
In other words, ethereans capitulated again just two months after their first big capitulation in September.
That September capitulation, however, was arguably due to eth sentiment itself. While this recent plunge into despair may have more to do with BSV’s nonsense and bitcoin’s capitulation to a yearly low of $3,500.
Whether this will now stop capitulating remains to be seen, but 2018 has been the worst year for eth so far and one of the worst year for the entire crypto space.