CryptoTC
Crypto Fat Cat
The markets overall are down big over the last few days. However, many were hoping the new capability of buying Ethereum Classic (ETC) on large crypto exchange Coinbase would help support or even bump up prices. The coin, a fork of Ethereum diverged after the DAO contentious split, had shown price strength over the last month after Coinbase first released news of their plans to support trading and storage of the coin.
This is probably another classic case of buy the rumors and sell the news, as it looks like traders jumped on the bandwagon at the announcement time and started dumping as soon as they could sell on Coinbase.
I wonder how many see ETC as a legit platform for dapps and smart contracts going forward? Can it compete with ETH for developers and support, or is this another pure trading coin with little to no other use?
Anyone want to chime in?
Ethereum Classic Is Down 30% Since Its Listing on Coinbase - CoinDesk
Excerpt:
The price of ethereum classic (ETC) has depreciated more than 30 percent against the U.S. dollar since its listing on Coinbase.
Prior to the August 7th listing date, ETC's price surged on two recent occasions, the first of which began on June 11th when Coinbase announced its intention to add ethereum classic to its platform. ETC's price went from $12.19 to $16.40 over the next 48 hours, printing a 34 percent gain.
The next and most dramatic boost began on August 3rd, following another announcement from Coinbase which stated that ETC trading would finally go live on August 7th.
From August 3rd to the 7th, the price rose more than 50 percent in U.S. dollar terms, hitting a peak of $21.25, according to data from Bitfinex.
It's not exactly a surprise when prices rise significantly after news of this nature is released, as investors would regard an asset as undervalued when taking into account the potential for a large cash flow increase that may accompany an exchange listing.
That said, this period of volatility often causes prices to rise to an amount where the asset is no longer considered undervalued, setting the stage for a market sell-off.
Ethereum classic was no exception to this reality. After the recent price high of $21.25, the price has fallen more than 30 percent versus the US dollar and is currently trading at $15.
This is probably another classic case of buy the rumors and sell the news, as it looks like traders jumped on the bandwagon at the announcement time and started dumping as soon as they could sell on Coinbase.
I wonder how many see ETC as a legit platform for dapps and smart contracts going forward? Can it compete with ETH for developers and support, or is this another pure trading coin with little to no other use?
Anyone want to chime in?
Ethereum Classic Is Down 30% Since Its Listing on Coinbase - CoinDesk
Excerpt:
The price of ethereum classic (ETC) has depreciated more than 30 percent against the U.S. dollar since its listing on Coinbase.
Prior to the August 7th listing date, ETC's price surged on two recent occasions, the first of which began on June 11th when Coinbase announced its intention to add ethereum classic to its platform. ETC's price went from $12.19 to $16.40 over the next 48 hours, printing a 34 percent gain.
The next and most dramatic boost began on August 3rd, following another announcement from Coinbase which stated that ETC trading would finally go live on August 7th.
From August 3rd to the 7th, the price rose more than 50 percent in U.S. dollar terms, hitting a peak of $21.25, according to data from Bitfinex.
It's not exactly a surprise when prices rise significantly after news of this nature is released, as investors would regard an asset as undervalued when taking into account the potential for a large cash flow increase that may accompany an exchange listing.
That said, this period of volatility often causes prices to rise to an amount where the asset is no longer considered undervalued, setting the stage for a market sell-off.
Ethereum classic was no exception to this reality. After the recent price high of $21.25, the price has fallen more than 30 percent versus the US dollar and is currently trading at $15.
