On July 26, the Ethereum course reached its minimum value, and the very next day began to grow up a bit. Now the air rate fluctuates, sometimes rising to $ 240, sometimes dropping below $ 200. So what's going on?
Hacking, ICO and regulators
Ethereum had two main problems last month. The first is a few high-profile cases of theft of the crypto currency when a number of companies leave for the ICO. At the end of July, intruders managed to withdraw $ 34 million in total (at the exchange rate at that time) from three companies in total. These companies kept their money in the purse of Parity, and to withdraw money, cybercriminals took advantage of a vulnerability in the software in order to change the owner of the wallet. Everything turned out as well as possible (from the burglars) and the money was withdrawn. After this, the developer Parity released an update, but after a fight, as they say …
Among the affected companies are Aeternity, Edgeless and Swarm City. This incident is very serious, throughout the history of the ether something similar happened only once, albeit on a larger scale. Then the DAO project was able to attract $ 160 million, of which more than $ 43 was withdrawn by unknown intruders. And the method of deduction was cunning enough – it's not even hacking, but, say, the use of implicit functions of the Ethereum environment.
Almost all thefts were committed during ICO – the initial collection of tokens by startups. In one case, "hacking" was ridiculously simple – hackers just hacked the site of the company that raised funds and on the main page of this site replaced its official purse.
The second problem is that the US Securities and Exchange Commission has equated the digital money that is used during the ICO to securities. So far, nothing like this has happened. Now, the US authorities are going to start regulating the industry of the crypto currency. For the United States, it is necessary to think, other states will be tightened too. So far, regulation is limited to the fact that all organizations that want to conduct an ICO, will be forced to undergo the registration procedure with the SEC (the same commission).
Taken together, it hit all the crypto-currencies – and the hacking put extra pressure on Ethereum.
But otherwise, the beautiful marquise …
Actually, these two factors, the difficulties of Ether are, for the most part, still being circumscribed. And the rest of Ethereum is doing well. For example, in mid-July, 34 new companies joined the Enterprise Ethereum Alliance, three of which you know for sure: Mastercard, QIWI and Cisco.
Now there are 150 companies in the alliance. Among the newcomers are banks, start-ups, technology companies and many other types of organizations. Also among the newcomers are Bloq, Cybersoft Digital Services Corp., iEx.ec, Lazarski University, OTP Bank Plc., Scotiabank, Technical University of Munich, Texcent Asia Pte Ltd, TIS R & D Center. Inc., TokenCard and other organizations.
In addition, an increasing number of companies are beginning to use the air as a means of payment. Here news comes even from Russia: Alfa-Bank and S7 Airlines have launched a special platform based on Ethereum for conducting trading operations:
"With current settings, our network can perform more than 100 transactions per second. Full payment cycle. Including about 7 transactions, the finalization of the blocks and the payment in a fiat currency now takes about 23 seconds, "said Pavel Voronin, Deputy Director General for Information Technologies of S7 Group.
Here it should be noted that in the case of Alfa Bank "And S7 Airlines uses only the software basis Ethereum, not the crypto currency itself, but it is still a positive news for the whole community.
And this is only a small part of the success of Ethereum in recent times. More and more companies are entering this market, some countries recognize the air as a means of payment. Investors with tight purses appear in this sphere, which means that soon after the regulators of different countries regulate work with Ethereum, financial corporations, major IT companies, banks, etc. will enter the market. And this means getting huge amounts of investment, which will positively affect the rate of Ethereum and other currencies. The founder of the investment firm Standpoint Research Ronnie Moas believes that within a year the price of Ethereum can double, to $ 400 for a cryptonet.
Of course, no one can guarantee a cloudless future – but some bad news is incapable so far to break the powerful trend for the ascent of the Ether, so its prospects look quite promising from our point of view.
Demand for cloud ether mining is growing all year: