Vitalik Buterin, co-creator of Ethereum (second most valuable cryptocurrency), lost $400 million in a few days. This was due to the drastic fall that the currency has had in recent weeks. In five weeks the cryptocurrency went from record profit to one of the biggest losses. Not only the Ether (ETH) had casualties, but so did everyone else. This came after news of a new crackdown on Chinese miners.
Cryptocurrencies have been through a lot of ups and downs in the past few years. But the recent crash in prices of Ethereum, the second most valuable cryptocurrency in the world, has come as a shock to many.
In just a few days, Ethereum has lost over 50% of its value, crashing from around $2000 to below $1000. This is a huge blow to investors and enthusiasts who had high hopes for the future of Ethereum.
The main reason for this sudden crash is believed to be the sell-off by major institutional investors. These investors had bought ETH at much higher prices and were looking to cash out when prices started falling.
This selling pressure further pushed prices down, leading to the massive crash we are seeing now.
The other reason for the price crash could be the uncertainty surrounding the future of Ethereum. There is a lot of speculation that Ethereum 2.0, which is supposed to be a major upgrade to the Ethereum network, might not launch on time. This has made some investors nervous and they are selling off their ETH holdings.
Whatever the reasons may be, this crash has come as a rude shock to the Ethereum community. It remains to be seen how prices will recover from this setback.
For you:
- Chinese Bitcoin miners ‘don’t even feel like drinking anymore’
- ‘Bitcoin is the king of cryptocurrencies and is here to stay’ says eToro CEO
- Research shows that Americans choose gold over Bitcoin for the next 10 years
- Bitcoin soars again after plunging to the lowest price in 2021
This drop impacts not only smaller miners, but large ones as well. According to Forbes, Buterin’s two main ether addresses have 325,001 and 1,366 ETH. This means that the co-founder of Ethereum has a value of $632,499,246. However, as of May 3rd, the value was approximately $1.09 billion. In other words, in weeks he lost the equivalent of US$ 457,500,754.
In the last few days, Ethereum – the second most valuable cryptocurrency in the world – has lost more than 50% of its value. This sudden and steep drop has come as a shock to many investors and observers, who are now wondering what caused it and whether or not it will recover.
There are a few possible explanations for Ethereum’s sudden drop in value. One is that a largeETH holder sold off a significant portion of their holdings, causing the price to dip. Another possibility is that there was a technical glitch on a major exchange that allowed traders to sell ETH for far below its actual value. Whatever the case may be, the result has been devastating for those who were holding onto Ethereum in hopes of it increasing in value.
One Response