The initial coin offering (ICO) sector wouldn’t be what it is today without Ethereum. The development of this network allowed hundreds, if not thousands of altcoins to be created and launched through ICOs.
This is why the majority of ICOs will accept ETH anyway when it comes to their ICOs. There has been an interesting study conducted which showcase just how much certain ICOs hold in ETH. This firm in question is called Santiment and they specialise in analysing the current sentiments of the markets and they have published this research which they have been called the Ethereum Spent Overview.
What are the details that are resulting from this research?
As part of this research, they looked at more than 650 different ICOs which had collected contributions from investors through ETH.
Of course, they disregarded the Ethereum Foundation because naturally they would hold the most ETH, the ICO at the top of the rankings in terms of the amount of ETH they hold is DigixDAO as they have about 466,000 ETH. This is a project that is based on the Ethereum blockchain and they have a goal of being the digital currency that is gold backed. Next in the list are Golem, Status, Aragon and SingularDTV.
The scale of the Ethereum Foundation’s holding is around the $200 million mark. Most of the ICOs that were examined managed to have at least $3 million in ETH. One of the interesting outtakes from this research was that OmiseGo had zero ETH holdings. Whether this is a mistake or it is the truth, either way it is very interesting.
With the ETH prices tanking over the past few weeks, there has been a large sell-off as investors and even ICOs trying to liquidate their holdings as they expect the price to drop even further. It was not too long ago that the price was well above the $1,000 mark and now it is struggling below the $300 mark.
Inevitably, with such a significant sell off, there is going to be a lot of congestion on the Ethereum network, which will see similar consequences as Bitcoin experiences when it comes to congestion.
The entire cryptocurrency market is experiencing a lot of turbulence and the highs of December are well in the past, with many tokens struggling to stay afloat.