3 days ago, there was biggest ICO on ETH network named Status which cause DDOS attack on blockchain and lower ETH price by 20%
Previous ICO didn't cause such high Tx / hour.
The impact of status was enormous. There was around 100K TX/hour from users that want to participate in ICO Status and buy tokens.
Unfortunately ETH blockchain can handle 14 Tx/second, about 50.000 tax/hour, which was not enough and whole network become unreliable and lots of transactions failed.
As a direct result, there was a 20 % drop in price of ETH from 0.1385 to 0.115 because of network issues caused by participants in ICO. Till today ETH price didn't recover from that fall.
Due to ongoing network instability, Ethereum deposits/withdrawals are disabled on major exchanges till now.
Until ETH developers upgrade the network with Metropolis, which should in theory allow 1 million Tx / second we can expect the same kind of problems to happen again and again with every major ICO.
Despite the fact that I am a big supporter of ethereum, I do believe that such an approach with ICO will drive ETH price sharply down and will also have a very negative effect for investors.
yeah i agree with you joe, that attach has a negative effect and it would take sometime for recovery
Unfortunately, there are many new ICO in a row, which will cause similar problems over and over again.
There are a lot of ICO's but how many will have more than 50K transactions an hour?
The funny thing is that a lot of people know the Ethereum blockchain can only handle 14Tx/second and then only when there is a crazy peak in transactions they lose their faith in Ethereum. Hopefully Ethereum will speed the process up so they can handle more transactions an hour. That would push the price up way more then 20%.