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RE: Well, it looks like the bubble has officially popped
It's a necessary evil that unfortunately affects true believers in blockchain products. Most altcoins are inherently tied/pegged to ETH or BTC, so as we flush out garbage/scam projects, so too will ETH and BTC suffer. It's the nature of the market. The larger question at hand, is how will the crypto space react post-cryto purge. Will altcoins rebound? Will new sub-par projects emerge (and people invest in them)? Ethereum and Bitcoin are 'too big to fail' at this point, and truly pose value-add solutions. At some point, believers and supporters will buy back in. Nothing you can do other than ride the wave, move your coins to tether (or some other stable coin), or panic and sell everything (not suggested).
Great comment. I couldn't have said it any better myself. That is likely what is causing the selling right now in my opinion. Much of the money raised via ICOs was in BTC or Ether and they are experiencing FOLA (fear of losing all) and having no money to build their projects. So, they sell it all while they can, helping crash the markets.
True, and a truly vicious cycle if scam-coins continue to appear. As much as I fear regulations, something needs to be put in place to improve market stabilization and give credibility to the crypto space as a whole.
I agree 100%. There needs to be a higher barrier to entry for this market if we want to stop scams. It costing so much money to get a company listed on a public stock exchange is one of the big barriers to entry for scams on stock exchanges.
Where did you think the money was going from the sell off? Into tether, ETH, BTC, stable coins - which explains in large measure the choppy price movements these couple days, as sellers try to find somewhere to ride out the panic. It's not left the crypto market.
This whole debacle did reveal one interesting thing -- it appears Ethereum has truly started to decouple from bitcoin. That said, I think money from the selloff was either exchanged for Tether, moved to a 'money market' placeholder via a custodian (Coinbase), or withdrawn completely. It certainly wasn't re-invested...yet.
I think very little of it was withdrawn completely. The market cap if you include tether isn't down as much as a crash out and withdrawal would come to. So it must be in money markets.