Crypto Market Reveals Double Digit Losses As Bitcoin Hike Takes A Reverse Swing
Following a riotous start which skyrocketed the cryptocurrency prices to awe-aspiring heights, the market for digital currencies have undergone significant correction lately which squeezed down the prices by 11% in the last weekend. Global events such as China announcing a ban on ICO on Monday sent shockwaves throughout cryptosphere as Initial Coin Offerings were considered to be main cause fuelling up the rapid rise of cryptocurrenciestill now.
The Chinese government has formed a working committee which has issued standing instructions to companies which have raised funds through ICO to return the same back to investors. This has paved the path for extreme uncertainty in the price frontier of mainstream cryptocurrencies such as Ethereum and Bitcoin when small tokens received through the ICO platform gets re-converted. As a direct effect, China based cryptocurrency NEO which was formerly known as AntShares went down by 50% in the last few days.
As per Chinese officials, ICO’s have disrupted the financial and economic order of their country. The double digit losses of cryptocurrencies in the last 48 hours surely prove that investment in the same is definitely not for the faint hearted lot.
Start-ups mostly take advantage of the ICO platform to raise necessary funds without having to fine tune much with the regulatory requirements. This year various companies around the globe has raised an approximate figure of 1.5 million USD through the ICO platform. Such offerings are in most cases backed by the Ethereum component which in turn has also reported steep hike in value in the current fiscal.
As per data published by CoinMarketCap, the cumulative value of 866 digital currencies fell from Saturday’s $180 billion to $160 billion on Monday morning. Analysts are still keeping hope by terming the dip as just a correction following its wild start with the total value of cryptomarket swelling up by 80% in August alone.
As per Charles Hayter, the founder and CEO of CryptoCompare, the market for virtual currencies have been subject to steep volatility since the very beginning and the current happenings are just repercussions of the same.
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