The bitcoin benefits from all the positive talk about the blockchain by financial institutions. Bitcoin pricing is also pushed higher from all the buzz around new initial coin offerings (ICOs).So it makes sense that when a high-flying ICO like Tezos burns and crashes bitcoin pricing also moves lower. And that is where the problem is.
Today’s ICOs come in so many shapes and sizes as fund-raising venture for some questionable companies — that crashes are apt to happen.
Tezos imploded after the company announced this week that there would be a delay in the offering and there were internal conflicts between the founders and the head of a Swiss-based foundation set up by the founders.
So bitcoin and ethereum will take price dings as questionable ICOs come to market. There needs to be some distance between the two cryptos and newer issues.
Like the dollar and stock market exchanges. If a company files for bankruptcy, the exchange may go down slightly, but the dollar is unaffected by the event.