High Expectations Are Crushing Ethereum Tokens Against BTC And USD

High Expectations Are Crushing Ethereum Tokens Against BTC And USD
Looking at the list of Ethereum based tokens recently is quite a depressive task. Many of these tokens have sunk far from their all time highs as experienced at the start of the year, with many now on a trajectory towards new all time lows. Generally speaking (minus a few exceptions) Ethereum based tokens are down around 80% against Bitcoin and the US Dollar, they are seeping value and becoming more worthless by the day. One experts believes this is down to disappointment and high expectations. Jonathan Cheesman, a cryptocurrency investor and Partner at Distributed Global has discussed this theory, arguing against correction and stating that high expectations have contributed to the current decline in Ethereum based altcoins. According to NewsBTC, Cheesman has said:
“The crypto pendulum has likely swung into negative territory on Ethereum. The problems they are addressing — building a decentralized, secure & scalable smart contract protocol — is an extremely difficult innovation. Expectations were clearly too high and we are now gravitating back to a more reasonable place.”
See more for yourself, here. The problem here seems to be that these tokens are now at a good value, they aren’t undervalued by any means, instead, the boom in the cryptocurrency markets at the start of 2018 has given many Ethereum tokens a false hope, high expectations as a result of off the scale high values. Actually, these values overvalued these tokens and therefore, today what we see looks very disappointing, but actually, in the eyes of Cheesman, today’s values are more representative of the Ethereum based tokens true value, the start of the year was actually just an anomaly. Cheesman added:
“That said, this is a necessary wake up call for the folks at Consensys and other projects. Once you open the door to market forces it cannot be closed and investors have expectations that need to be managed. The primary mismatch here is on timeline — this is an early stage technology and should be appreciated as such.”
So, in time, Cheesman does believe that Ethereum tokens will grow, but for now we shouldn’t see today’s values in a bad light. If we consider all time highs as a strange occurrence, a one off so to speak, then we can see more focus on what the future will bring for these tokens. Growth will come over time but first, the technology within Ethereum Tokens needs to see wider adoption.
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