Why did ethereum (ETH/USD) become so cheap? A question that is of a big interest to many investors and traders. Indeed, for three months the rate of ETH fell by 60% (from $ 476.14 to $ 189.1).
One of the reasons for such a sharp decline is ICO. Many projects began to sell the attracted ethereum to cover current costs. Respectively, the price of ETH became vastly reduced. Over the past 10 days, ICO startups "merged" 195.9 ETH in the amount of almost $38 million.
According to the research conducted by GreySpark Partners, almost half of ICOs conducted in 2017−2018 have failed, while 40% of them have collected over $1 million. Experts underline that in the near future the number of large-scale ICOs will diminish even further due to increased regulations, increased investor awareness and maturity of the market. This will likely decrease the price of ethereum even further.