Cryptocurrencies

2016 ICO dumps $72 million worth of Ethereum on the market


Golem Network (GLM) raised exactly 820,000 Ethereum in 2016 during the initial sale of their tokens, also known as an ICO. They are now selling those Ethers, because Golem Network recently dumped 72 million dollars worth of Ethereum on the market.

Golem Network was an early adopter

Golem Network was early, because at the time of their ICO you could buy one Ethereum for 10.20 dollars. We don’t hear much from Golem Network anymore, but Ethereum is of course worth a multiple of that 10.20 dollars at the moment.

According to analysts at Lookonchain, Golem Network sold 24,400 Ethereum for $72 million. After that sale, the project still holds 127,634 Ethereum, which is worth $381 million.

With the current Ethereum price of around $3,000, the Ethereum price has increased by ~30,000% since the project’s ICO. In that respect, the token’s owners won’t be too unhappy with their Golem Network.

The promise of an open-source platform aimed at decentralizing computing power never seems to materialize (at least not from Golem Network), but it has made the people behind the project multi-millionaires.

The market cap of Golem Network

Currently, Golem Network has a market cap of $322 million, which means that the Ethers held by the project are worth more than the entire project itself.

In that respect, we can cautiously say that Golem Network failed and that investors were much better off with Ethereum itself. So originally 820,000 Ethereum was raised by Golem network.

That would now represent a value of several billion dollars. That was probably not what the investors at the time expected, because otherwise they would have kept their Ethers on board.

Do you still invest in new tokens or do you prefer to stick with established names like Bitcoin and Ethereum?

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