by Grayscale Investments, a leading crypto asset management firm, announced that it wants to sell off its entire Ethereum proof-of-work tokens which it acquired through its other subsidiaries – Grayscale Digital Large Capital Fund and Grayscale Ethereum Trust. This decision follows Ethereum’s transition from the proof-of-work protocol to the proof-of-stake.
Trying to Sell-Off
It is said that Grayscale is out to dispose of up to 3.1 million Ethereum PoW tokens. The announcement from the asset manager created an uproar in the crypto market as many accused the firm of dumping its assets on the market.
As the firm noted in its press publication, the two subsidiaries that acquired the Ethereum asset will transfer all their holdings to Grayscale Investment because of the recently concluded Ethereum Merge. According to the plan, Grayscale investment will be saddled with the responsibility of selling those Ethereum assets within 180 days. And all profits made from selling the stated Ethereum assets are billed to be distributed to all shareholders of the Grayscale firm.
It was also present in the said announcement that Grayscale is trying to address the problems of the shortage of liquidity plaguing the Ethereum proof-of-work market. Since the Ethereum proof-of-stake was just recently launched, the market is still rife with uncertainties about the support any platform will give to it and if they have enough liquidity to support it, the firm stated.
The Bane of the PoW
Furthermore, Grayscale said there are some worries about the volatility of the Ethereum token. This poses a problem that they are not able to predict how much their tokens will eventually be sold for.
As things stand now, proof-of-work Ethereum is a mystery since no one can tell precisely what is ahead of it in the future. However, a blockchain developer and the founder of Emerald, Igor Artamonov, put the estimates of a fork as quite narrow. Artamonov was part of the plan to create Ethereum Classic.
While giving a detailed explanation on the matter, Artamonov stated that those behind the Ethereum proof-of-work as developers are not managing the project properly. He clarified that if a person with more professional ways of handling things does not join the team soon, the project might come to a sad end.
Artamonov summed it all up as a good opportunity that might be missed as a result of bad execution.
