Yesterday a friend of mine reached out to share a twitter thread that had spooked him about the current state of the Ethereum market.
This is the first tweet in the thread that my friend referenced
1/ Given that most recent ICOs have raised significant funds through ETH, driving up the price, these very same ICO operators have
— Galois Capital (@Galois_Capital) July 3, 2017
There’s essentially 11 more tweets that layout a large problem many cryptocurrency investors are starting to have with Ethereum which that not all investors possess the same information. Essentially the claim of this twitter thread was that Ethereum is too volatile to hold at the moment becasue any newly issued ICO can simply dump a tremdondous amount of ETH into the market which will drastically effect the market price.
I have to admit, this is fair point and simply a very real possibility.
In fact I’m quite sure that some of the volatility in the current Ethereum prices are largely based on this claim.
I don’t claim to be the foremost authority on all crypto currency matters so I decided to take this thread to renowned investor Fred Wilson of Union Square Venture.
Fred Wilson is the man that got on Bloomberg and made the bold prediction that Ethereum would bypass the market cap of bitcoin this year. This has been called, “The flippening.”
Fred Wilson, did write back and simply said…
i am still long ETH
— Fred Wilson (@fredwilson) July 6, 2017
You heard the man. He’s long ETH, are you?
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