Ethereum Drops Another 12.5%; Buterin Clarifies and Jabs at Justin Sun
Ethereum lost another 12.5% of its coin value overnight as ETH dropped to a valuation of $170. Last night saw Ethereum drop down from the $190 range, and completely negate the $180s on its way to a price of $179, as covered here.
By 09:00 UTC on Wednesday morning the coin had fallen further, and was trading at a price of $170.41; the lowest since July of last year. That’s down from the twenty-four hour high of $194.41, and continues Ethereum’s freefall over the past month.
How Much Further?
The $170 mark was hit twice over the course of the morning, and both times proved to be the low barrier – but for how long? At the present rate it appears as though the entire market is heading back to its starting point from before the surge of 2017. How far back that marker goes is up for debate, but it was in the summer of 2017 that Bitcoin and altcoins alike suddenly began to double, treble and quadruple in price.
Looking at Ethereum’s current trend, that could mean a return to a valuation of around $20. The same logic would place Bitcoin on around $1,000, but BTC doesn’t seem to be following the same logic as the rest of the market, and has maintained its November 2017 valuation of around $6,000.
If this pessimistic outlook turns out to be the case, then it means the only way that the mid-to-long term hodlers of 2018 can get their money back any time soon is to pray for another manipulative market surge by whoever triggered the previous one.
That leaves the crypto community in the uncomfortable position of having to choose between their morals and their money. Cash out as soon as you hit an acceptable profit margin and condemn the market to another vicious cycle? Or lose money while waiting around for something more noble to emerge from the crypto and blockchain scene?
Vitalik Buterin vs Justin Sun
While we wrestle with that conundrum, Vitalik Buterin has clarified the earlier comments he made about the crypto market which many deemed to be pessimistic. Buterin took to twitter to remind his followers that realism is preferable to hype:
“Me: obviously, let’s be realistic, the entire world wealth is not going to turn into cryptocurrencies…
Media: VITALIK IS A PESSIMIST!!!!!1!!1!
Guys, if you spin things this way you’re *incentivizing* people to act more like @justinsuntron.”
The jab at Tron (TRX) founder and CEO Justin Sun is no doubt in reference to Sun’s tendency for hype, and here Buterin may actually be touching one of the core issues at hand in the blockchain scene right now. There’s a lot of money to be made in hype, but it may come at the long term detriment of this entire enterprise.
Buterin put his comments in perspective by adding:
“A 1000x price increase from today means $200T in crypto, or ~an entire 70% of today’s global wealth being in crypto.”
With that kind of context, Buterin’s comments suddenly seem a bit less pessimistic, and more realistic.