$100 Million: ICO Projects ‘Spent’ Over 500,000 ETH in the Last 30 Days

Francisco Memoria
  • Available blockchain data shows ICO projects have 'spent' over 500,000 ETH in the last 30 days.
  • This would help explain why the cryptocurrency's price has been plummeting.

Projects that raised funds selling tokens on the Ethereum network have ‘spent’ over 500,000 ETH (nearly $100 million) in the last 30 days, blockchain data shows. This, coupled with large whale movements, could be behind the cryptocurrency’s recent price drop.

According to data from Santiment, which tracks the wallets of a number of initial coin offerings (ICOs), the project that spent the most ETH in the last 30 days was DigixDAO, as it spent nearly 210,000 ETH ($41.6 million) in said period. It still has 395,000 in its wallet.

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The second project that spent the most was dice game Etheroll, as it moved over 89,000 ETH ($17.6 million) from its wallets. Cobinhood, a commission-free cryptocurrency exchange, stood in fourth place after moving 84,500 ETH ($16.8 million).

Various other projects moved well over 10,000 ETH in the last few days. Notably, data shows that the Ethereum spent over time on September 4 was of 250,000 ($49.8 million), shortly before the cryptocurrency’s price plummeted this week from over $280 to little under $200. It’s possible some of these funds were sent to cryptocurrency exchanges and were then dumped on the market

At press time, the second-largest cryptocurrency by market cap is trading at about $199.5 after falling 4.65% in the last 24-hour period, according to CryptoCompare data. In the past 30 days, the cryptocurrency lost over 38% of its value.

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The drop, as CryptoGlobe reported, has been attributed to short seller pressure, as the number of shorts against the cryptocurrency recently hit an all-time high, and to ICO sell-offs coupled with scalability issues. As a result of these, investor confidence in ETH went down.

Along with these factors, the cryptocurrency’s co-founder Vitalik Buterin recently told Bloomberg that the explosive growth days are over for the cryptocurrency and blockchain ecosystem. Per Buterin, crypto users should be encouraged to explore “real applications” and the “real economic activity” associated with the technology.

It’s worth noting that while Santiment’s data shows the ETH has been ‘spent’ it only means it has been moved. The website assumes moved ETH has been spent, although projects could have numerous reasons to move their funds.

While some projects are indeed likely cashing out their ether as the cryptocurrency’s price drops in an attempt to preserve some of their funds, others could merely be rearranging them. In the past Etheroll has addressed rumors it dumped funds, claiming it was “simply migrating funds to an updated smart-contract.”

Elon Musk Rejects Rumors on Plans to Use the Ethereum Blockchain

Francisco Memoria

Tesla and SpaceX CEO Elon Musk has recently revealed he isn’t using the Ethereum blockchain to build anything, and addressed his stance on the second-largest cryptocurrency by market capitalization.

Musk’s comments came in response to a tweet published by famous Hollywood actor William Shatner, who claimed last year Elon Musk was, along with Ethereum co-founder Vitalik Buterin, “deciding what to build on Ethereum.”

The Canadian actor, well-known for his role as Captain Kirk on Star Trek, has been a cryptocurrency proponent for some time, at one point even releasing his own non-fungible token (NFT). One year after he tweeted out Musk and Buterin were working on Ethereum, the CEO of Tesla replied.

In a single tweet, Musk revealed that he is not building anything on top of the second-largest cryptocurrency’s blockchain, nor is he “for or against it.” Shatner later responded to the CEO telling “I still love you even though you haven’t found blockchain technology fascinating.”

Musk has notably made various comments on the cryptocurrency space over time. As CryptoGlobe reported, earlier this year the CEO said crypto could be a replacement for cash. On numerous occasions, he teased the community on the microblogging platform, either tweeting about BTC or about Dogecoin.

In an odd tweet published in January of this year, Musk said “bitcoin is *not* my safe word.” While the tweet itself has never really been explained, over time the COE has said he is “neither here nor there on Bitcoin,” but that he did find the cryptocurrency’s whitepaper “very clever.” In another tweet, he revealed he “only” holds 0.25 BTC.

Featured image via Pixabay.