Last August, the crypto industry saw prices plummeting amid a massive market selloff. At the time, Ethereum fell nearly 20 percent in value in 24 hours, dropping to around $262, whereas Bitcoin was down seven percent to just over $6,000. According to analysts, the industry had hit "panic mode."
Following the boom in initial coin offerings (ICOs) during 2017 and into 2018, as a way of raising funds for various projects, analysts linked the market decline to the liquidation of funds. As a result, companies were taking measures to sell the Ethereum raised, which saw it falling to its lowest price in a year.
One Twitter user posted a tweet that showed the net losses of various altcoins over a 30-day period. At the time, NEO was down the most at 54.43%, followed by XRP at 40.60%. One investor who had got into the market at the end of January following the December bull run, which saw Bitcoin rise to $20,000, posted their woes on Reddit. Their initial investment of $25,000 across a variety of coins soon dwindled to around $5,000.