Is it mistaken to say that an “ICO panic sale” is happening for Ethereum (ETH)? Tom Lee suggests a trend reversal
Has the panic selling (panic sale) of ICOs ended?
Many analysts attributed the price drop of ETH mainly to projects that had raised hundreds of millions of yen worth of Ethereum through ICO (Initial Coin Offering) crowdsales, selling their ETH in a panic. This was also seen as a side effect of the ICO market, which grew rapidly from mid-2017.
On September 11, the cryptocurrency research firm Diar reported that ICOs still hold more than 38% of the funds raised through token sales. In this case, ICO projects might liquidate their remaining ETH holdings, potentially driving Ethereum's price lower. Diar's chief editor, Larry Cermak, wrote the following at the time:
“The idea that ICO companies sold off the majority of their ETH holdings is a misconception. These projects have moved or liquidated 62% of the funds raised, but they still retain 38% of the total raised. In other words, selling pressure on ETH remained and would not dissipate immediately.”
