Yesterday we noted that the advance of the crypto markets was still on fragile ground given the low volumes (which dropped below $4 billion again this week after briefly getting into the $5 billions), and so it has turned out to be the case, with many crypto giving up much of their gains of the past week or so.
Particularly hard hit is EOS, the one-time darling of the sector that mishandled its mainnet launch and has been entangled in governance issues ever since. It is down a whopping 13.7% today to trade at $7.34.
Ethereum is 8.8% lower, and most top alts have lost similar amounts. NEO which has done well recently following its announcement that it was opening up to more nodes being well received, is down 10% to $34.
Bitcoin Gold and Digibyte have both been hard hit, both clobbered 15%. Tezos, which raised $232 million in its ICO last year which at the time made it one of the biggest, is bucking the trend and is 4% higher. Some Tezos investors launched a lawsuit against the founders Arthur and Kathleen Breitman, who have been locked in their own dispute with the Tezos foundation. Investors are no doubt hoping for a fresh start by the project.
Bitcoin and Ethereum are still up on a week view, 5 and 6% respectively.
Behind the fall
No single factor is behind the sell-off other than an over extension of the rally which created a sell signal for traders.
Tether volumes have doubled to $3 billion as market participants shift out of crypto into the Tether stablecoin.
MyEtherWallet (MEW) reported another vulnerability over night which may have contributed to the negativity as expressed in prices.
MEW remains a popular wallet for Ethereum-complaint tokens and is still used widely for sending tokens to ICOs. However, it has been having problems with security this year in addition to one of its co-founders, Taylor Monahan, leaving the project to set up a new wallet, mycrypto.com.
In other news, the reports published by Imperial College , London, yesterday has been trashed by FT Alphaville, the home of the super critics of all things crypto. The FT’s writer Jemima Kelly doubts the independence and veracity of the report, which claimed that crypto adoption would rise over the new few years. Kelly did not hold back on her criticism:
It’s true, the foreword is clearly marked as having been written by eToro, and the rest not. What might surprise some readers is the unifying boosterish tone of both. Peer reviewed this is not.
The professor didn’t say how much he was paid to write the report, but when we suggested this kind of work might be more lucrative than academic work, he said: “it depends, on a case-by-case basis, but I suppose that is true in general.”
We can understand academics taking on consultancy work — everyone has to make ends meet, and we know universities struggle for cash. But promotional material should be clearly labeled as such. And even promotional material, when it’s written by academics, should probably be better than this.
Gary has been writing about cryptocurrencies since 2013 and currently works as the cryptocurrency analyst at interactive investor, the UK’s second-largest online investment platform. Gary contributes for Coin Intelligence News in a personal capacity and none of his commentary should be considered investment advice. Gary is the winner of the ADVFN International Financial Awards 2018 Cryptocurrency Writer of the Year. Contact Gary on twitter at: @gary_mcfarlane