“If you bet 20, 50, or 100 times your money on a crypto investment, it wouldn’t be a mistake to sell 10%, 20%, or even 30% of your position.”
This view was expressed by Fred Wilson, the “famous” billionaire, venture capitalist and Ethereum backer on January 8, 2018 – the day that ETH rose from $ 1,100 to $ 1,300.
Shortly thereafter, the price plummeted around $ 200, but rebounded to $ 1,400 again – just to fall and fall, so even the spring-summer mini bull run couldn’t really break the price. In contrast to Bitcoin.
A lot seems to have gone wrong at ETH. The heinous communication of the Ethereum Foundation (EF), which apparently sold $ 100 million at the top, is one of them.
The sudden cancellation of an upgrade, which should take place within a few days, also – not least because this upgrade was what is now known as the “Finality Gadget”. That means: decentralized control points of the ETH proof of work chain through a staking smart contract.
Even worse is the relentless dumping caused by projects that had received billions of dollars in ETH with Initial Coin Offerings (ICOs).
This is ETH’s 2015 version of merchants that sell Bitcoin. After much effort to persuade them to accept crypto in general, the traders’ escape from volatility through Insta conversion to Fiat made them a source of volatility themselves. So Bitcoiners turned against them under the HODL banner.
ETH enthusiasts also turned against ICOs and even covered the SEC. On top of that. The initial panic probably started with Litecoin founder Charlie Lee’s confession that he sold all of his LTC at the all-time high in December 2017. A Litecoin was worth $ 400, now it was $ 40.
Vitalik is said to have sold ETH for 22 million
Vitalik Buterin himself is said to have sold ETH worth $ 22 million. This is followed by Riccardo Spagni from Monero, who indicated on December 20, 2017 that he no longer had any Monero holdings.
Then the crypto ad ban suddenly came – Google, Facebook and the like all no longer allowed crypto ads. Visa, Mastercard and Co. also prohibited the purchase of crypto with credit cards. In retrospect, it doesn’t all seem random.
Sure, most cryptocurrencies went through the roof so quickly that they had to fall at some point. However, the near-perfect timing of the sell-off by all of these crypto founders suggests that they were an immediate cause of the turnaround – and maybe even responsible for the brutal rate at which crypto prices fell.