Can Ethereum ever reach new ATH? Let’s talk about the ICO paradox.
Background: this is not FUD, I love and still hold some ethereum. I just want to have a healthy discussion and hopefully learn a few new things. I have been in ETH from the beginning of 2017. I have seen the price soar from 20$ to over a thousand in less than a year. I invested in allot of ICOs during 2017. Everything was sweet.
This ride had mostly to do with demand for ETH. You can argue it had other factors, true but the main factor was fomo and ICOs. Billions of dollars poring into new projects. These ICO’s have mostly a lock-in period of a year to five years.
Now these projects can sell their ETH and they have to. Keeping projects alive and paying salaries is not with ETH but mostly with fiat. Here comes the paradox (hope this is the right word, not my first language) can the demand for ETH and ICOs outgrow the dumping of these projects after a year? Most projects received 20-50 million in fundings. Can the demand keep up with the selloffs in the long run?
Now you might say ethereum has other use cases and utilities. Besides staking, powering the network or for dApps. But can this demand outgrow the trashy ICO dumps? Enlighten me or share your thoughts. Cheers!