Falling of Ethereum Halved Hedge-Funds’ Income

According to the research conducted by the analytical company Autonomous Research LLP, a significant number of the crypto hedge-funds (there were 226 ones in February this year) incurred losses amounting up to 50% of the total income.

The authors of the research name a deep correction of the crypto market as the main reason of such a decrease. The analysts believe that nowadays funds are forced to open short positions to regain their reputation.                 

Another reason for losses, according to the researchers, is the general mood among the crypto enthusiasts, and also the extensive value fluctuations of Ethereum. The analysts are also sure that the ICO phenomenon has worsened the reputation of the cryptocurrency as a mean of payment.

The situation of Ethereum is significantly weakened by the fact that the coin is losing its universality. That is: to use the project on the Ethereum platform the users have to purchase a token issued for fundraising. At the same time, Ethereum is not used for services’ payments. This does not allow using it as an accounting unit or a medium of exchange.

Moreover, according to the reporting information, Ethereum is suffering from scalability problems, and it is very unattractive for hedge-funds, aimed at short-term investments.

No wonder that Ethereum falling bothers all the crypto society. There are several reasons. Firstly, the platform is very popular and constantly attracting new developers. Secondly, the number of ICOs passing through Ethereum blockchain is several times higher than transactions on other platforms. As a result, many experts are sure that such superiority will allow Ethereum to resist the market fluctuations. So, the coin will grow, while it is popular.