First, let’s talk about Bitcoin, The SEC’s review on ETF is the last hope for everyone, my last article also wrote that (address here). Although CVC’s CEO Vinny Lingham believes that the possibility of obtaining approval is less than 20%, it’s already a pinned subject. We have no need to worry about, time will prove everything.
After Bitcoin, then Ethererum is the next one, which is a super pregnant woman.
As a uterus to nurture new projects, ETH price followed the ICO boom to $1400 in early 2018, becoming the world’s second largest cryptocurrency. But recently, it has fallen below $300, which is close to 80% decline. So, what happened to ETH in this half year?
1. THE LOSS of users on DAPPs
As a super pregnant woman, the biggest role of ETH is to produce new projects, dapps and build an ETH ecosystem. Along with the ICO, many ETH babies were born at one time, including another pregnant EOS (now mapped to the mainnet and changed to be coins), one of the world’s largest exchanges, Binance’s BNB coin, and a lot of altcoins, aircoins like WICC, etc.
In addition, there are various dapp games, such as the Cryptokitties that were previously hot. However, according to BTCManager news, the user base of Cryptokitties has dropped by as much as 95%. Is this because of poor quality? Not attractive enough? Or is it the result of a general decline in trust on cryptocurrencies?
2. THE FLEE of project party
China, a magical country, the ICO was boomed here and also annihilated here. Although the Chinese government has banned on the ICO, this won’t stop the people who are addicted to money in this crazy country.
At the end of June this year, Bitcoin plunge below the cost of $6000, and a lot of project parties run away rapidly. Countless HODLers who are shouting “rights defending” every day, and there are many poor people who invest these projects by borrowing usury. However, this is the reality, and all the project parties are running away.
One of the most famous examples belongs to Waykichain, which is the WICC mentioned in the last part. Through the marketing methods such as gambling and World Cup, they have earned 2.2 billion yuan (about 3.2 billion dollars), which has caused many people homeless. And it is actually a “blockchain company” that even have no designed websites, using web games to deceive people.
Now, there is even a tutorial on the Internet called [How to exchange 1 ETH to the 1 billion tokens you want to issue], and someone else has created a token called “Bitcoin” on Ethereum to deceive people. The whole cryptocurrency related things have been stinking like a shit, and the crisis of confidence will make people far away from the word “cryptocurrency”. Is this really helpful for the entire blockchain industry?
3. THE REMEDIATION of related media
In the earlier this year, Google, Facebook, Twitter and other SNS websites have banned the contents of cryptocurrency. Even if Facebook finally lifted that banned related advertisements, it still banned information about ICO and binary options. From this time point, all kinds of altcoins born from ETH began to fall.
Not only that but China’s largest social software, WeChat, also started blocking the public accounts of various blockchain media last night, making these projects overwhelmed. At present, there was no specific news for how WeChat takes the next step, but if it really starts to rectify, it will be a good reshuffle for the entire cryptocurrency market.
The original intention of ETH was to create a huge ecosystem that would make the blockchain to be human’s hope in the future, rather than becoming a profitable tool for some bad people. Even if the price of ETH coin is still falling at this stage, it does not affect its status as a big mama. I hope more investors can see the current situation, invest rationally, learn more relevant knowledge, and build the blockchain better.