Ethereum Massive Price Drop May Have Been Caused by EOS Selling Large Amounts of ETH

Ethereum has experienced an important drop on May the 28th that could have been caused by EOS, which could have been selling part of its ETH gathered during the ICO. According to TrustNodes, 300,000 ETH have been sold at the same time as Binance Listed EOS/USDT.

What Caused Ethereum’s Drop?

When the market experiences such situations, it is always important to understand what caused and what’s behind them. This time, Ethereum lost 14% of its value in just 2 hours in the Bitfinex exchange. This is a massive drop that has an explanation.

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The market was handling around 20,000 ETH on different exchanges, including OKex and Gdax, but in Bitfinex, from one moment to the other, 180,000 have been exchanged. It was one of the highest volumes involved in a drop in Ethereum’s history. And it called the attention of several investors that were discussing about why it could have happened.

As the sell off has not been seen in other markets, tit could be related to one wealthy person or team at the Bitfinex platform. According to TrustNodes this team may be EOS.

EOS shows that spent from one day to the other 300,000 ETH. At the moment, the company has over 1.1 million ETH in its different wallets that could be used in the future.

At the same time, Bitfinex is campaigning in order to become a miner in the EOS platform, something that is called Block Producer. This suggest that there may be a connection between the exchange and the cryptocurrency.

Moreover, Bitfinex was the platform that moved the most ETH in 24 hours when the sell-off happened. It handled 12.51% of the total ETH volume, with $275 million dollars. At the same time, the platform had the lowest ETH price among the most important exchanges in the market.

Important regulators in the United States announced that they will be investigating price manipulation in the virtual currency market, a measure that has been welcomed by important figures in the cryptocurrency community, including Cameron Winklevoss.

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Author: Carlos Terenzi”