Blockchain startup EOS is exchanging millions of dollars’ worth of Ethereum (ETH) for fiat, leading to concerns prices are suffering as a result.
Analysis of wallets linked to EOS, which has so far raised around $200 mln in its marathon ICO, shows mass transactions being sent to cryptocurrency exchange Bittrex.
“Long story short, some of the bigger ICOs are cashing in and contributing to a decline in price,” a user uploading the findings to Reddit concluded.
The sheer volume of interest in recent ICOs and associated side-effects for the Ethereum network have led to increasing criticism from users.
Combined with this week’s dramatic downturn in ETH price, current sentiment is keen to link the multimillion-dollar sales of new startups with overall poor ecosystem health.
“TenX is doing the same,” the Reddit user continued.
“Buckle up ladies and gents, we’re going to have to endure the consequences of some of you becoming overzealous ICO flippers. Now the whole crypto market might be taking a hit.”
ETH has since recovered from two-month lows to climb above $200 Wednesday, with the averaged exchange data from Coinmarketcap showing the asset trading around $211 at press time.