RE: Overnight Wrap: Bitcoin and Steem Higher, Ether surges as Mastercard joins the Ethereum Alliance and stricter capital requirements for Aussie lenders
Enjoyed that. Thanks mate.
But seriously @bulleth, I'm still perplexed as to the eth pile on (and BTC for that matter). Sure Mastercard is great news, but eth is still a stability nightmare so long as it remains a get rich quick scheme for ICOs runners. Latest case in point tezos. http://mashable.com/2017/07/05/tezos-ico-cryptocurrency-startup/#3ojM2fW3wZqh
This stuff is simply terrifying and to me will (at least should, seems it still hasn't) devastate confidence and credibility in Ethereum. As well transform hundreds of millions worth of eth into a ticking liquidation time bomb as projects cash it out in panic of price drops.
So yeah, insane 40% increase today, another 50% drop next week? I just can't see any meaningful gains coming through over the next 6 mo.
Valid point, thing is, it did pretty much devastate confidence, that last sell off was pretty nasty even for Crypto. If this was a traditional market, I'd say ICO supply coming online is 'priced in', but not sure if these markets are actually that mature.
At end of day, these ICO guys have to choose between dumping it all or trickling it out in small, regular leakages. The latter is definitely the smarter and more sustainable option, but it is plausible that a direct competitor to Ether like EOS might maliciously dump ... let's hope not
Sorry to repeat myself, but I think the Mastercard news is HUGE lol not just great ... Visa will come on board very shortly IMO and we'll see another wicked surge.
There's also the theory that constant stream of new money continues to offset leakage. When you consider global capital markets total >$65 Trillion, still an awful lot of money that can flow in. Steemit new user figs are an imdocator. Would love to see an aggregate of crypto exchange new users.
What in God's name are Tezos going to do with $200MM. What the fuck!
Thankfully not all in Ether. Most in BTC so a huge sell there should be... erm... probably not good either given the knee-jerk reaction the market takes when BTC sneezes.
Just amazing though eh. Projects like that getting an order of magnitude more cash than they need. What happens to that money?? All that happens is you make small groups of people obscenely rich who stick around to give the appearance of commitment, then slowly back out with enough cash for a family dynasty. Sure a few idealogues may stick around and truly innovate and put that money to work. But the vast majority are there purely for the payoff. They may feel like they are there to "revolutionise". But you put a few million dollars in someone's hand and priorities change quickly.
Honestly the shear scale of the cash influx is still so staggering to me.
It is amazing just how much has been raised by ICOs over the past couple of months. As you say, much more than they actually need to complete development.
I see no problem with people being rewarded for innovative ideas or hard work, but... if it's an ICO then they haven't created anything yet!
There was even a 'Useless Ether Token' created, which publicly stated that it has no use at all. And guess what, people are trading it! Why, it's of no benefit. Just proves that you can get money for nothing in this space at the moment, which is a shame.
EOS I'm not so concerned about, although it continues to raise lots of cash. It has Dan Larimer onboard, which says a lot. They will produce a product and it has the potential to be big.
Yes, they are selling Ether to fund it, but I see that as a temporary price reduction, which means we could buy Ether at a good price.
Tezos worries me though. Lots of BTC and Eth, seemingly arrogant folks in charge with no real experience in creating their own blockchain...