Ethereum is on the slippery slope...👀

📉 Ethereum is on a slippery slope as some of its initial coin offering (ICO) developers and investors cash out. Read time: 1:37 mins

Ethereum (ETH, a.k.a Ether) is an open software platform on the blockchain that enables developers to build and deploy decentralized applications. Developers tend to use ethereum for its ease of use and its security – which has no central point of failure and zero downtime. It’s responsible for 94 out of the top 100 crypto projects and its digital currency, ETH, is second only to Bitcoin.

It’s fair to say no crypto has been powerful enough to escape the bear market’s grip this year, and ethereum is no exception, having dropped over 60% since its peak in January. Furthermore, it dropped 20% this week – partially spurred by the news that over 50 ICO projects which raised well in excess of $6bn using ethereum sold more than 125k ether (worth $35mn in today’s price) in the past month.

This is not the only cause of concern for Ethereum, as major mainstream tech companies like Twitter, Google and Facebook banned ICO advertisements earlier this year, impacting the amount of investors participating in the investment rounds. Ethereum also caught the attention of countries that put stringent regulations on ICOs, with China banning ICO activities due to lack of trust in the crypto startups.

WHY SHOULD YOU CARE?

Ethereum is still the preferred platform for startup companies looking for a blockchain-based application. Many crypto projects claimed to be the true ethereum killer, but have yet to have the same impact or claim part of the 90% market share ethereum has on the ICO market. Therefore, it might not be all doom and gloom and there could be a chance that Ethereum may bounce back if the downward crypto market takes a u-turn.

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