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The Ethereum Crash is Not Over

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The Ethereum crash looks far from over. A few days ago, Ethereum crashed to a new milestone when it dipped to levels below the much dreaded $200 value. Every crypto enthusiast was confident that the King of Smart contracts would continue to hold its own and possibly recover to levels around $400. But that has not come to be as the crypto markets are still stagnant at levels of a total market capitalization of $195.4 Billion and at the moment of writing this, ETH is somewhat stable at $192.

As a result, Bitcoin (BTC) has even increased its dominance to 56% as I write. On the other hand, Ethereum’s dominance is currently at 10% after dropping by a few points for its usual dominance in the markets of between 14 and 18%.

Why Ethereum’s Crash is not Over

To begin with, the rumors that the ICOs from last year are selling the Ethereum they raised is valid. Looking at the EOS project, the team managed to sell off all their Ethereum before they launched their mainnet on the 2nd of June. Further checking the crypto markets, we find that ETH was relatively well priced at around $600 back then. Using this price as a reference, the digital asset had dropped an astounding 57% from its all-time high of $1,400. Therefore, the EOS team was justified in cashing out before it dipped further.

It is with this background that the probability is high for more ETH to be sold in the markets by ICOs still holding bags of it. Common trading sense indicates that when a digital asset is spiraling out of control in the markets, the best option is to opt for BTC or the controversial Tether (USDT) to hedge against further losses.

The number of ICOs still holding ETH are still significant enough to cause a further decline of the digital asset if they decided to systematically trade it for Bitcoin or any of the other stabler digital assets such as Stellar (XLM).

Secondly, and even without the ICOs selling their Ethereum, the crypto markets are in a very fragile state. The bear market that was kick-started by regulatory fears from South Korea and China back in February has shown no signs of abating even with proof positive evidence of institutional investors getting into crypto investing.

Wall Street even has plans of offering Ethereum futures contracts before the end of the year. This should have led to a positive knee-jerk reaction for Ethereum in the markets.

The mood and feel are that we are headed for tougher times this September, especially with the pending SEC decision on the CBOE sponsored ETF on the 30th of September. Global Coin Report had advised in an earlier post that traders tread carefully between now and the D-Day that is September 30th.

What can Save Ethereum?

The answer to this question is simple. The markets need to turn around before it gets worse for Ethereum. Crypto traders and the institutional investors need to start buying and pushing for the massive adoption of cryptocurrencies for day to day commerce such as paying for coffee. That is the only way that demand for all digital assets will go up, thus causing a ripple effect that will raise the price of ETH.

A second option would be for the Ethereum core developers to solve the scalability issues on the network to enable for faster transaction speeds as well as cheaper transactions. This then will prevent DApp creators and users from moving to more efficient platforms such as Tron (TRX) and Zilliqa. The network congestion on Ethereum is the sole reason savvy investors continue to short ETH in the markets.

In conclusion, the short-term future for Ethereum in the crypto markets looks a bit bleak in the current bear market coupled with the possibility of ICOs deciding to sell all their ETH before it is too late. That said, it might be time for ETH HODLers to reconsider their investment strategy moving forward as the Ethereum crash looks far from over.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Altcoins

Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

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While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle.  Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance.  One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess.  That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS.  These projects have managed to find a foothold in the market and have a better chance than most of staying there.  While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.

What is a Cryptocurrency CDP?

In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount.  There are several examples of this in our day to day lives.  Auto title loans from large companies like TitleMax are extremely popular with consumers.  Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has.  The consumer can continue using their car as long as debt payments are made.

The same concept applies to cryptocurrency CDPs.  Consumers are able to put up crypto tokens, such as…

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Altcoins

Hodium Presents a Compelling Opportunity for Outsized Investment Returns

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Hodium
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I’m sure all of us remember the cryptocurrency glory days of 2017 and early 2018.  It was one of the biggest bull runs in history and created incredibly wealth for quite a few early entrants.  Unfortunately, for most of us, those gains have most likely been wiped out during the altcoin apocalypse.  The truth is that traders probably thought a bit too highly of their trading abilities when the reality was that anyone could have thrown a dart at a board and ended up making money.

As markets mature (and the crypto market is definitely maturing) it becomes more and more difficult to generate alpha.  In that regard, it’s similar to traditional financial markets.  I can remember trading during my high school days.  It was the late 90s and right in the middle of the dot.com boom.  Eventually, however, the euphoria fades away and reality hits hard.  Now, it’s become rather difficult to actually trade profitably which has given way to the rise of hedge funds.

Hedge funds are investment funds that pool capital from accredited and/or institutional investors and invest in a variety of assets, often with extremely complex portfolio-construction and risk management techniques.  The professionals employed by hedge funds are the best of the best and have spent years honing their craft.  That is why they’re able to make the millions of dollars that they normally…

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Altcoins

KaratGold Proves Its Business Model By Providing Official Documents

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There has been a lot of renewed enthusiasm in the cryptocurrency market thanks mainly to Bitcoin’s strong move about 10,000.  Although Bitcoin continues to show its dominance, the altcoin market has yet to benefit from that rally.  A few of the largest altcoins remain popular but the rest of the market continues to lag behind.  In 2018, there was a lot of talk regarding a possible altcoin apocalypse where only the strong would survive.  That prediction appears to be playing out as expected.  Going forward, only the best projects that have a real world need will survive.  Crypto traders will have to spend a lot of their time doing proper research in order to find the best opportunities, just like in all financial markets.  One promising project that appears to have the makings of a future winner is KaratGold Coin.

KaratGold Background

KaratGold Coin is a cryptocurrency developed by the reputable German company Karatbars International, which maintains a leading position in the market of small gold items and investments. The project is part of a larger ecosystem, which involves several blockchain solutions that can be used for transactions, communication, investing and other tasks. During the past few weeks, however, the KaratGold ecosystem has been a target of unsavory scam allegations.  

Karatbars International and GSB Gold Standard Banking Corporation…

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