Bitcoin Forum

Just curious what exactly they do, how do they convert it  to Fiat? OR they retain them.

not quite sure what they do but i guess yeah they convert it to fiat, so they can use that money to devlop and maintenace on their project

The last time ICOs started liquidating their eth, it went from $400 to $150.

Yes, does look likely but I wonder how? May be they have tie ups with exchanges.

You mean they retain the ETH? I do get it its bad when they sell such huge amounts.

After they scam the investors,they will dump the funds to some exchanges that will give them easy money.

It depends on the ICO and how they are running things.  Many keep the funds locked up for a certain period and will only withdraw a small amount that they need for developments.  They will usually announce all withdrawals and with purposes if the ICO is legit and is not a scam. 

This makes sense. Legit ones will care or their own ETH reserve gets devalued.

I wish Ethereum builds some ICO protocol so that the platform and currency is not used by Scammers. Vitalik must think about it.

In order to work the owner must get liquidity so they would have tot change crypto for money. They have to pay rent, salary and other services.
I think that they have these options:
 - credit from a bank, thus keeping the crypto making good profit from the rise
 - using funds of theyre own also for keeping the crypto (this means thay should have some big money into theyre accounts)
 - changing on the exchange but only in the limit of theyre needs.

Anyhow i think that they should postpone the liquidation as much as they can in order to proffit as much as they can from the rising of BTC and ETH.

Well that depends in your location or what country you live. for me i live in a southeast asia country that supports bitcoin and accepts converting bitcoin to fiat they have a site for it that lets me cash out through bank, remittance or cardless. That's how i can liquidate my crypto. It just really depends on what country your at.

Well thought! HODLing does make sense.

That's good but can you liquidate ETH/BTC in millions?

they don't usually dump it all at the same time. what they do is that they wait for some pump to come and then start to slowly dump it on the market. that causes a big drop nonetheless but it will be a slower drop not a sharp one and without any recovery.

although there are cases that people panic. we have all heard about panic sellers before. that is when they have a large amount of some asset and see it crashing. for example after a big dump has occurred. that is when they suddenly decide to dump a large amount of their assets on the market. in  this case they dump millions of ETH on exchanges.

Got it, btw who are these Pumpers- whales?

I agree, they have at least these ways to work with their crypto money, maybe there is something else.. But definitely sure that new project development process need fiat money, so they should exchange some amount of money (from ICO from axample).

I'm curious which exchanges would give such huge liquidity? I keep hearing about poloniex.

I think they dont convert into fiat in the same time since big amount.
And fiat is using to develop their project.
I think they sold it to some big exchanger.

It is not easy to convert huge ether into fiat with bank. Many questions will keep poping up about where your slush of cash is coming from. But you can be sure of many alt ways to convert money e.g p2p.

To convert to fiat is quite easy and will use a typical developer as a case study and what he would likely do. Those two options of coins you have there, makes it very easy because its available on lots of exchange sites all you need is to locate a reputable sites that allow fiat conversion and use them. If that will be too noisy, you can try other option.

Another is to try peer to peer site where you can open a trade and start selling directly in bit within your locality where money would be deposited in your bank account. You can also start selling for other things you need because might be you want to convert to fiat then buy skrill, you can get someone who is willing to do that then you are good.

In our Model, when an investor invests in Crypto, we use a payment gateway to collect the payment before forwarding it on to an exchange that automatically converts to fiat and sends the balance to a dedicated bank account. Being a regulated entity, certainly helps when we have to explain to the banks and insurance providers.

I'm sure they convert it to fiat, and that's exactly what they are suppose to do in my opinion. Ethereum just provided the platform for the investments and funding to take place. Once they get the funds from other investors, the company owners should use them to develop their project. If they need to develop infrastructures or technology, and they need to buy materials to work with, then they need to convert ethereum to cash, in order to buy those things. As on how they do it, I guess they do the same thing as anyone else. They get it to an exchange, and then to the bank account of the company.