ETH and ICOs - Do you think that the decline of ETH price will affect ICOs?

[CryptoBry]

Yes, it can affect in many ways but I am more concerned on the effects of many bad and scams projects to Ethereum. People are losing interest with ICO projects because majority are downright scams and many of those who are not are finding it hard to reach any cryptocurrency exchange and many of those who finally reached the exchanges are not experiencing the kind of value that investors are expecting...many are therefor disappointed. Soon am sure there should be changes with the ICO platform otherwise if the same thing can go on then am expecting it to die a natural death in 2 or 3 years. When investors are losing money only insane people will expect that more growth can be possible.

[jackylion]

Yes, it is possible that the ICO is trading on an ETH coin. All tokens are ETH and once the ETH falls, the value of the coin drops. But there are some coin still very well developed.

[xenomorphe1]

Yes, as tokens are being traded with ETH too, their values are influenced by the price of ETH. ETH is a little like Bitcoin.

[yakushev]

Since ETH's price is still trading near this year's low, do you think ICOs, specifically ERC based, will be greatly affected? Or do you think price won't matter as long as the project is with great quality?

Already affected, and not only the ether, other projects also suffer and lose investment capital. Sometimes it reaches 80%, but this does not mean that the project is fraudulent, it just went bankrupt. So investing in projects now is also not encouraging.

[Fredomago]

Yes, as tokens are being traded with ETH too, their values are influenced by the price of ETH. ETH is a little like Bitcoin.

Yes, and aside from that the collected amount while the ICO are up and running can be affected when the decline happen, as we knew that developers are basing their actual fundings with dollar or if any fiat currency they've belong, all expenses and needed funds are base from that, if the decline happen when the team is still working with crypto, even they've got a good road plans it can be delayed, it's really up to the team how to manage the project to still go forward even in a slow pace.

[avarnet]

Yes, as tokens are being traded with ETH too, their values are influenced by the price of ETH. ETH is a little like Bitcoin.

it seems like it could be because ethereum is a coin that holds many ICOs in transactions and exchanges between ICO and ethereum tokens, so with a decrease in ethereum prices it could be that ICOs follow along too

[MrPiggles]

Since ETH's price is still trading near this year's low, do you think ICOs, specifically ERC based, will be greatly affected? Or do you think price won't matter as long as the project is with great quality?

I think the ETH price has a great impact on current ICO projects because if the ETH value increases, people will be more interested in ICO projects and vice versa. I believe this is a good time for people to invest in ETH as I am sure the value of ETH will increase in Q4 2018 and that ICO projects will receive additional investment funds if that happens.

[hubballi]

I dont think that their will not be any effect to the NEW and OLD ico which runs on good project. As this ICO are just created on ETH platform but they are traded in BTC price mostly, so i think until the project is good it should not affect it.

[antonhuda]

Indeed, eth and ico are working well together, but many of the ico are scams, so the eth value goes down. But if ico is successful, eth values will be better and have an increased community.

[Red-Apple]

it is all a two way hype. if ETH is hyped up (as it was in 2017) there is more scammers who will choose ETH platform for their ICO creation so the price of it goes up and if that hype goes away then there will be less ICOs on it and the price will fall.
also as the ICOs are hype up more (again like 2017) there will be a lot more of them every day as we saw last year so the more they are  created the more fake demand for ETH is created and the more pump it gets but when that hype goes away and there is no new ICOs or the numbers fall drastically so does the ETH price fall hard.

[CbineUltra]

Since ETH's price is still trading near this year's low, do you think ICOs, specifically ERC based, will be greatly affected? Or do you think price won't matter as long as the project is with great quality?

ETH value should not affect ERC projects if the project has a real application. But speculative tokens can easily fall in price. Here it is necessary to be careful.

[pageraji]

ICO's especially used erc 20 token as platform always affect with ethereum price, those relationship affect each other, ETH can fall on dip when many project try to liquid into fiat.

[ruthbabe]

Good day! A lot of ICOs has stopped or postponed their ICOs already due to the decline of Ethereum value. They are at a loss and in doubt to be able to reach soft cap. But there are some ICOs who has team members that works at their ends to be able to provide investors the tokens that is worth investing. If a project is confident to keep their ICO going despite this market crash is a thumbs up for me.

It's the opposite, I think. The impact of the massive ICO cashout or sell-off causes the Ethereum to crash. Well, as we know, almost all ICOs (Initial Coin Offerings) that were launched feature ERC20 tokens. Lots of investors who purchased tokens from ICO sales are worried about the crypto market situation, as a result, they sell their tokens too early so this has caused a lot of pressure on the market.

[Laxus215]

It will be beneficial for the ICOs obviously which have quality and they will easily raise their softcap and Hardcap. In future price of the ether can again jump to its ATH price and ICOs can make huge profits on the collected amount from their token contribution. But on the exchange only ICOs which have real vision and MVP available with good partnership will survive. Rest we know what happens with ICOs when launch on the exchange the price of their token generally goes down by 80% to 90% because of some presale investors who fear and sale quickly.

[supermine]

Surely it will affect the ICO sales because most of the people will be afraid to invest on any new project when the market kept falling for long time and also the project team will be highly affected due to the price because they can't make enough funds to execute their plans about that project and also it will affect the token listing period for the exchanges.

[South Park]

Great discussion! Thank you everyone for sharing what you think.

Here are a couple of take aways based on your opinions:

1. Price psychology plays a big factor whether or not investors participate in an ICO. Since the price of ETH is close to the year's low, some (not all) investors prefer to wait on the sidelines and this affects all projects IN GENERAL. As a result, some projects extend the ICO period to reach required caps and others move their ICO at a later date.

2. The price of ETH should not matter as long as the project is of great quality although there maybe a possibility that ICO period maybe extended due to the overall market sentiment (psychology as mentioned above). Unlike last year, great projects get sold out even before the ICO period ends.



Other points of discussion:
Based on trends for the past years, do you think ETH will gain even at least half of what it lost before the year ends? When do you think is the best time for high-quality projects to do their ICO period?

It is very difficult to predict the future, however I think that a small recovery for ethereum could be possible during the next months, the price has been going down consistently since June of this year, however I'm beginning to see some signs that ethereum could recover and touch the price of 500 before the end of this year or at the beginning of the next year, however you need to be very careful about predictions that you hear on the Internet, that is just what I think but I could be completely wrong.

[Sifon]

The value of an ICOs tokens directly influenced by ETH especially for ICOs launched on the Ethereum Network. So, as ETH declines in price, it affects other ERC20 tokens. This is evident in my ETH wallets where the value of tokens I hodl keep depreciating as ETH plummets

[blitz888]

We've hit the bottom last month, according to some analysts

https://www.ccn.com/analyst-ethereum-sell-off-in-august-shows-crypto-has-hit-a-bottom-in-2018/

Do you agree that what really propelled bitcoin's run are the massive ERCO 20 based ICOs last year? This means that Bitcoin's rise has been indirectly fueled by ETH?

[South Park]

We've hit the bottom last month, according to some analysts

https://www.ccn.com/analyst-ethereum-sell-off-in-august-shows-crypto-has-hit-a-bottom-in-2018/

Do you agree that what really propelled bitcoin's run are the massive ERCO 20 based ICOs last year? This means that Bitcoin's rise has been indirectly fueled by ETH?

That is completely false, what made the price of bitcoin to go up was that the developers were dedicated to activate segwit, if the price did not skyrocket any sooner was because there was a very strong opposition coming from the miners and then as soon as the developers achieved their goal the price began skyrocketing like we hadn't seen before.

[ckorbba]

The value of an ICOs tokens directly influenced by ETH especially for ICOs launched on the Ethereum Network. So, as ETH declines in price, it affects other ERC20 tokens. This is evident in my ETH wallets where the value of tokens I hodl keep depreciating as ETH plummets

We still have to take into account the fact that almost the entire cryptocurrency market depends on the price of Bitcoin. Thus, the price of ethereum is dependent on Bitcoin too.