With so many ICOs gathering Ethereum funds in 2018, it is no wonder some are cashing out. While in theory ETH could be used to simply allow the app to function, there is also the rationale that the coins are a potential source of cash for operations.
The Ethereum market price slid well below $400. ETH has since recovered slightly, but is still down more than 60% from its peak values. ETH lost more than 23 since last week, to $391.69.
So far, the effect of EOS has been noticed, as the project continuously gathers ETH in daily auctions. The ICO will not need ETH for gas purposes in the future, and sells off some of the coins. But now, the crypto community is looking closely at projects.
Due to the transparency of the Ethereum blockchain, it is easy to see when an ICO moves funds from their main wallets. In a recent tracking effort, a special Twitter account now monitors wallets for most ICOs:
One of the projects that recently moved coins, presumably to sell, is Mysterium:
The Mysterium project, aiming to offer anonymity services for online presence, has been aiming to expand its team. But most of the efforts of Mysterium are concentrated around promotion and expanding the presence on conferences and through other chances to present. The MYSt digital asset has lost 90% of its value in dollar terms since the peak in December and January, and has slid by more than 95% against BTC compared to the post-ICO spike.
The other ICO seen moving ETH coins from the main wallet is Kyber Network.
The Kyber project has released regular updates, and on march 19, launched the beta version of its Kyber decentralized exchange. At this point, it is hard to determine where the funds have gone, for selling, or for other technical services, including the workings of the decentralized exchange. The Kyber exchange is about to expand to the public for more active trading.
For now, it is difficult to see what ICO projects have done with their funds. Some projects have disappeared or turned out to be a scam, while others have lived through thefts and losses. But most ICOs are sitting on tens of thousands of Ethereum, or millions in the case of the earliest project when ETH traded at $8.