The price of most ERC20 tokens depends on the price of the ether!

[De_nis]

It seems to me not correct that the price of most ERC20 tokens depends on the price of the ether! What do you think?

[siggy]

I do not see there any anbelievable or unpredictable thing, because these tokens can not work without Ethereum's blockchain.

[tk808]

Why is this not correct? The teams that create ERC-20 are dependent on Ethereums blockchain to survive in the first place. Just because they market their platform/services and etc, doesn't mean they are not directly connected to Ethereum.

At the end of the day, most ERC-20 tokens are copy and pasted.

Another broader example is Bitcoin's dominance of the market. When Bitcoin falls or gains, alternative coins will follow. Everything is connected, and if the top 2 coins that are interlinked and every other alt-coin is synonymous with these chains, then all markets will follow suit.

There's a lot to this, but mainly has to do with the traders. Since every token is traded in either ETH or BTC, then their valuations will also decline due to being linked. Just like if any currency devalues in the real-world, those companies valuations also decrease, unless they gain against those currencies (valuing the company even higher).

[IrinaPro94]

this is not quite so the price depends only on the ico after the token enters the market the price is quoted already from the enthusiasts of the crypto market who believe in the token, correct me if it is not

[De_nis]

Why is this not correct? The teams that create ERC-20 are dependent on Ethereums blockchain to survive in the first place. Just because they market their platform/services and etc, doesn't mean they are not directly connected to Ethereum.

At the end of the day, most ERC-20 tokens are copy and pasted.

Another broader example is Bitcoin's dominance of the market. When Bitcoin falls or gains, alternative coins will follow. Everything is connected, and if the top 2 coins that are interlinked and every other alt-coin is synonymous with these chains, then all markets will follow suit.

There's a lot to this, but mainly has to do with the traders. Since every token is traded in either ETH or BTC, then their valuations will also decline due to being linked. Just like if any currency devalues in the real-world, those companies valuations also decrease, unless they gain against those currencies (valuing the company even higher).

Communication ETH and altcoins is not very proportional, it is not predictable, if we talk about real projects, their cost should be somehow related to USDT, because the projects require real costs.

[crypto228]

I think that you are mistaken. Does not depend on the etherium. In general, the entire crypto-currency market shows itself practically the same in times of falls. All translate into dollars and prices for all fall without objective reasons. We fall together, grow up separately, here are the laws of this market.

[Crypdon]

It seems to me not correct that the price of most ERC20 tokens depends on the price of the ether! What do you think?

It's a good theory but doesn't always work. Most alts will follow bitcoin including ethereum so they all kind of rise and fall together. In a stable market some alts rise above the rest and those might be ethereum tokens. If these projects were reliant on ETH then yes there would be a stronger correlation, but once on the platform it just requires a bit of ETH to cover wallet transactions

[JuliaJi]

it is decentralisation?  why so? if major coins are falling - altcoins too, if they are growing everything is green, is it manipulation of the market?

[The Cryptovator]

It seems to me not correct that the price of most ERC20 tokens depends on the price of the ether! What do you think?

Never, erc20 token price not depend ethereum. Every alt coin price depend community and trading volume. Erc20 token just created using ethereum blockchain, it doesn't mean ethereum controlling price of all erc20 token. No value of ERC20 it self if there isn't trader community to trade the token. Any one able to create erc20 token by using small gas fee. But it will be worst if no community for trading with it.

[MikeyVeez]

If it is true than simply prove it. I think that it is not a true. Because if Ethereum is falling down, then transactions fees are low and people can use more Ethereum network and use the ERC-20 tokens.

[InGODweTrast3]

I also believe that the pricing of tokens and ico is not quite transparent, more precisely not even fair when you buy at the price of ICO, and then the project sells its token on the stock exchange with a discount of 90% !!!

[tk808]

Why is this not correct? The teams that create ERC-20 are dependent on Ethereums blockchain to survive in the first place. Just because they market their platform/services and etc, doesn't mean they are not directly connected to Ethereum.

At the end of the day, most ERC-20 tokens are copy and pasted.

Another broader example is Bitcoin's dominance of the market. When Bitcoin falls or gains, alternative coins will follow. Everything is connected, and if the top 2 coins that are interlinked and every other alt-coin is synonymous with these chains, then all markets will follow suit.

There's a lot to this, but mainly has to do with the traders. Since every token is traded in either ETH or BTC, then their valuations will also decline due to being linked. Just like if any currency devalues in the real-world, those companies valuations also decrease, unless they gain against those currencies (valuing the company even higher).

Communication ETH and altcoins is not very proportional, it is not predictable, if we talk about real projects, their cost should be somehow related to USDT, because the projects require real costs.

They aren't exactly 1-to-1, and often there is a time-lag between markets correlating, but all markets behave in the same manner. Just like how every market declines when BTC declines, ETH to a lesser extent, but it still occurs. You can view the past 4-5 days where ETH lost about (rough numbers) 15%, then gained 15%, and see how most ERC-20 tokens and similar platforms behaved.

Eth's price is a fantastic indicator of what will happen to your erc-20 tokens.

Their costs are never related to USDT (only when the ICO is occurring and for a brief time after it has ended), and real-costs do not even come into play when it comes to stability of ICO funded projects. Bitcoin is the major driving force behind all valuations, and Ethereum plays a similar role on the markets, but mainly ETH's affects similar blockchains and ERC-20s.  

[Taniya1901]

Well, that's a fair pattern. For the survival of all those tokens need to have Etherium things went well, all tokens erc-20 depend directly on Eterium.

[artemdubina88]

I think so the price of tokens depends on Ethereum but he, in turn, depends on bitcoin , here's to us here monarchy ))

[Altcoins enthusiast]

It seems to me not correct that the price of most ERC20 tokens depends on the price of the ether! What do you think?

That is the major reason why when ether is getting dump most of the erc20 tokens are also getting dump.  There transactions hundred percent depends on ethereum network an as such ethereum has great said on them.

[Kreks]

It seems to me not correct that the price of most ERC20 tokens depends on the price of the ether! What do you think?

Always will return to their respective tokens, because after the token is released, nothing can affect the price except the community. And even developers will not be able to control prices. Indeed the global situation, say Bitcoin or Ethereum will have an effect on a token, but I think all tokens or altcoins will also refer to Bitcoin or Ether trends.

[gawuk]

It seems to me not correct that the price of most ERC20 tokens depends on the price of the ether! What do you think?

Maybe that happens when a coin is paired with Bitcoin or Ethereum, and is normal when prices influence each other.
But I think when a token has been listed in many markets and received a global response, the Ether price and erc20 tokens situation can be contradictory.

[Teraboy]

It seems to me not correct that the price of most ERC20 tokens depends on the price of the ether! What do you think?

thought the bitcoin still give a lot of impact to the price of ERC20 tokens too. But it's true that the price of ERC20 tokens depend on the ethereum. But i thought that you can try to see what has already happened with it. Mostly of coins are following ethereum and bitcoin trend right now.

[Orang Tua]

It seems to me not correct that the price of most ERC20 tokens depends on the price of the ether! What do you think?

Of course there is an effect, but we will always look for references to usd or values in fiat. But when the token is still in the ico process, then of course Ethereum's situation will determine the price of a token, even though some projects give prices with dollars.

[WaffleMaster]

Tokens literally need Ethereum for core functions of them As well, tokens would not even be in existence if it wasn't for Ethereum. Tokens need Ethereum gas to even be sent from one wallet to the next... Ethereum is tied to Bitcoin and tokens are tied to Ethereum whether you like it or not.