BUYER BEWARE
Here is my concern with putting new money into Ethereum right now.
The recent rise in Ethereum is more than just the typical pump/hype cycle. There are literally hundreds of ICO's that use ETH for their fundraising. And raise funds they've done indeed.
Billions of dollars of Ethereum have been traded for new tokens from ICO. So where does that Ethereum go?
These startups that started via ICO now hold hoards of ETH.
Can they pay their employees in ETH? Can they pay the power bill using ETH? Pay legal fees in ETH? Lunch even..?
The fact is that billions of dollars of Ethereum will need to be liquidated for fiat for these startups to be successful at all. Depending on the startup - it will be their choice to slowly liquidate as they need the fiat, or to dump larger holdings of ETH. To me - it seems like it would make sense to liquidate larger holdings to secure a hoard of fiat at these insanely high prices. Even Vitalik dumped 25% of his ETH in one sitting (around $8 each.)
Those heavily invested in Ethereum will say this is FUD. But this is a real concern, and it's why you won't catch me personally diving into Ethereum right now.
The fact is billions of dollars needs to exit Ethereum at some point. Only time will tell how soon and how much.
What are your thoughts?!
Thank you Drew from Cryptocurrancy collectors FB page
