Chart for ETH/USD
Ethereum (ETH) and those backing it have some valuable lessons to learn from the past. Of course, the one that tops the list is, “you reap what you sow”. How is this relevant? Well, back when Ethereum (ETH) forked off the original Ethereum chain, for every original Ethereum coin you had, you received two coins, ETH and ETC. Now, most of the miners and developers switched over to the new chain but some stuck to the old chain (ETC) out of respect for principles of immutability and decentralization. Unfortunately, principles did not mean much to those who had already violated one by supporting the fork. So, when Ethereum Classic (ETC) would appreciate in price based on some positive developments, these people who had bags of ETC from the ETH fork would dump their coins on exchanges. There were a lot of talks about the original DAO hacker dumping most of their coins and all that, but since the majority of those coins were confiscated, this was not the real cause. Of course, those who took their time to study addresses and their trading patterns could tell readily that it was members of the new ETH community dumping their ETC every time Ethereum Classic (ETC) made a move.
So, how is this relevant today? Well, EOS (EOS) has just done the same thing to Ethereum (ETH) that it once did to Ethereum Classic (ETC). It is no secret that EOS (EOS) held the largest ICO in the entire history of ICOs and raised a huge sum of $4 billion! Now, the interesting part is that this huge amount was raised in ETH. Certainly, Eos (EOS) did not need to liquidate all $4 billion at once but eventually they had to sell some of their coins for cash to pay for development and expenses. They did that, which initially put some pressure on Ethereum (ETH) and the whole community saw it. This was a shark smelling blood moment for EOS (EOS) which was also supposed to be an EOS (EOS) competitor.
Chart for ETH/BTC
So, as time went by, EOS (EOS) kept dumping their bags of Ethereum (ETH) but this time the reasons were different. They wanted to put Ethereum (ETH) out of business the same way some people in the Ethereum (ETH) foundation wanted to choke Ethereum Classic (ETC) in its early days. This dumping behavior on part of EOS (EOS) has made Ethereum (ETH) extremely vulnerable these past few months. It has also left a lot of investors worried as to what will eventually happen to Ethereum (ETH) if every ICO project starts doing the same. Certainly, Eos (EOS) could have opted to sell their ETH on OTC markets where it would not have affected the price. However, their motives were clear and they did not mean to hide it either as they meant to sent a clear message to the entire community. Anyone can follow the trail of major EOS (EOS) account holders’ ETH that was dumped on Bitfinex just during the recent correction. Whether or not Eos (EOS) might do the same in future remains to be seen, but Ethereum (ETH) has certainly learnt valuable lessons from the past for now.