Investors run into bitcoin, fleeing from another blow with a fork in the back

The uncertainty surrounding another split bitcoin puts pressure on hundreds of digital tokens issued this year, while the largest crypto currency continues to grow unabashedly in value.

“Market participants are running into bitcoin as a conservative position,” said Stan Miroshnik, managing director of Element Group, which helps start-ups with the initial placement of coins. In November, a new split of the bitcoin network may be held to increase the speed of transactions and reduce transaction costs, which can cause market participants to be nervous. In such periods of uncertainty, investors are trying to transfer their funds from other digital currencies to bitcoin, which has the advantage of a higher level of liquidity.

In addition, if there is a hardcore blockade of bitcoin, the owners of the crypto currency will receive a bonus in the form of issuing additional coins. This phenomenon has already been observed this week, with the creation of bitcoin gold, which appeared three months after the birth of bitcoin cache. Bitcoin is flirting with new record highs, and the prices for many tokens sold by start-ups to attract capital are actively becoming cheaper. Over the past month, the Bletchley Ethereum Token Index has dropped by about 16%. About 10% of the capital invested in tokens has already left these sites, said Lucas Nuzzi, senior analyst at Digital Asset Research.
This can greatly disappoint the companies that are planning the ICO. According to CoinSchedule, 75 primary placements have been planned for November against 64 last month. Some companies, like, for example, a platform for trading in virtual goods Wax, postpone ICO dates, referring to the expected hardfork. In the end, many projects attract funds through bitcoin, and investors do not refuse such initiatives. HardFork can lead to other disruptions. The leading crypto currency exchange Coinbase has already announced its intention to suspend the services of buying and selling bitcoin for 24 hours before and after the software update.
“Market participants are tormented by many uncertainties,” said Malcolm Cascell, president of Wax, which delayed the start of the preliminary sale of its tokens for a week. – Many exchanges do not allow the movement of funds. This phenomenon signals a slowdown in the sale of tokens on the sites. ” The miners, whose computers support the network, split into two camps in support of SegWit2x. These disagreements can lead to other problems, including slow execution of transactions.
“It looks like the market as a whole is counting on the fact that the hardcore will go smoothly,” says Kylie Samani, managing partner of the crypto currency hedge fund Multicoin Capital. “But I do not think that will be so.” If things are really bad, it can shake the whole market or we can see a mass flight to bitcoin / etherium. ” Ether is the second after bitcoin crypto currency in terms of market capitalization. Some investors even double the bet on bitcoin, hoping that the split will bring them additional profit. Since not all computers supporting the network will switch to new software, this will lead to the emergence of two competing networks, each of which will support its version of the currency. Bitcoin holders will receive both coins.
Bitcoin cache, a new version of the currency, which appeared in the summer, has been growing for almost a month, after which it moved to correction. After the second hardcore this week, bitcoin continued to go up, and its holders also received bitcoin gold, which now costs about $ 122. Since the first split of the network, bitcoin has more than doubled in price. “At the moment, ICO’s theme has come to a head, but it may soon return to the forefront after the bitcoin fever has died down and profit hunters return to other markets,” said Charles Heiter, co-founder of CryptoCompare.

Leave a Reply

Your email address will not be published. Required fields are marked *