On Monday, Ethereum, the rival of Bitcoin, took a plunge while “a major exchange” put its effort to “shore up confidence” in vain. As a result, an announcement was made whereby the customers who lost their money in “flash crash” that took place last week, were to be credited.
Ether, another name of Ethereum, “traded 20.9 percent lower at $239.63 Monday afternoon”, informed CoinDesk. The flash crash brought down ethereum to ten cents from “above $300” on “Coinbase's GDAX exchange”, while two days later the exchange reassured the customers experiencing “a margin call or stop loss order” to be credited.
However, the temporary halt at GDAX on the afternoon of Monday, affecting trades of “all products”, came to normalcy within a span of an hour, while data from CoinDesk shows that for the month of June ethereum is “still up about 2 percent” and “2,500 percent for the year”. The “unsubstantiated rumor” of Sunday that claimed the founder of ethereum, Vitalik Buterin’s death added to the brief woe of “ethereum's price”. As per Evelyn Cheng’s report:
“Ethereum fell from around $329 to a low of $284 Sunday before recovering, according to CoinDesk. Buterin tweeted a picture of himself Sunday evening, ET, to dispel the rumor”.
However, the author of “The Business Blockchain: Promise, Practice, and Application of the Next Internet Technology”, William Mougayar thinks that the rumour is not the main reason that caused “ethereum's decline”. His email to CNBC read:
“We need to see a full 24 hour cycle in order to fully assess what is actually happening. These cryptocurrencies are traded globally, especially with a large amount of activity coming from China, so I'm waiting to see what happens around 6PM EST this evening.”
The investors of digital currency holds the “reversal” of ethereum exuberance that stemmed from the various “ethereum-based” project launch, responsible for “clogging the network”. More prominently, the “inability of ethereum” in coping up with orders is an issue to ponder about as it can be a harbinger of “a debate over an upgrade model”, a similar fate as bitcoin that weighed down its value.
Furthermore, Cheng added:
“Two different methods for upgrading bitcoin, SegWit2x and BIP148, are set to go into effect July 21 and Aug. 1, respectively. Initially the systems were incompatible, threatening to split bitcoin in two and likely reducing its value. However, a developer announced earlier this month a way to make the two methods compatible, helping bitcoin recover from lows of the month”.
In the words of “Fred Wilson” partner of Union Square Ventures as well as a “digital currency investor”:
“My gut says we are headed for a selloff in the crypto sector”.
Although, he is optimistic about the “future of cryptocurrencies” in the coming decade.
References:
www.cnbc.com
Ether, another name of Ethereum, “traded 20.9 percent lower at $239.63 Monday afternoon”, informed CoinDesk. The flash crash brought down ethereum to ten cents from “above $300” on “Coinbase's GDAX exchange”, while two days later the exchange reassured the customers experiencing “a margin call or stop loss order” to be credited.
However, the temporary halt at GDAX on the afternoon of Monday, affecting trades of “all products”, came to normalcy within a span of an hour, while data from CoinDesk shows that for the month of June ethereum is “still up about 2 percent” and “2,500 percent for the year”. The “unsubstantiated rumor” of Sunday that claimed the founder of ethereum, Vitalik Buterin’s death added to the brief woe of “ethereum's price”. As per Evelyn Cheng’s report:
“Ethereum fell from around $329 to a low of $284 Sunday before recovering, according to CoinDesk. Buterin tweeted a picture of himself Sunday evening, ET, to dispel the rumor”.
However, the author of “The Business Blockchain: Promise, Practice, and Application of the Next Internet Technology”, William Mougayar thinks that the rumour is not the main reason that caused “ethereum's decline”. His email to CNBC read:
“We need to see a full 24 hour cycle in order to fully assess what is actually happening. These cryptocurrencies are traded globally, especially with a large amount of activity coming from China, so I'm waiting to see what happens around 6PM EST this evening.”
The investors of digital currency holds the “reversal” of ethereum exuberance that stemmed from the various “ethereum-based” project launch, responsible for “clogging the network”. More prominently, the “inability of ethereum” in coping up with orders is an issue to ponder about as it can be a harbinger of “a debate over an upgrade model”, a similar fate as bitcoin that weighed down its value.
Furthermore, Cheng added:
“Two different methods for upgrading bitcoin, SegWit2x and BIP148, are set to go into effect July 21 and Aug. 1, respectively. Initially the systems were incompatible, threatening to split bitcoin in two and likely reducing its value. However, a developer announced earlier this month a way to make the two methods compatible, helping bitcoin recover from lows of the month”.
In the words of “Fred Wilson” partner of Union Square Ventures as well as a “digital currency investor”:
“My gut says we are headed for a selloff in the crypto sector”.
Although, he is optimistic about the “future of cryptocurrencies” in the coming decade.
References:
www.cnbc.com
