Grayscale Is Accused of ETHPoW Dump After It Announces Selling of 3,1 Million Tokens
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Major digital asset manager Grayscale Investments announced plans to sell all ETHPoW tokens received by Grayscale Ethereum Trust and Grayscale Digital Large Cap Fund after Ethereum moved to token consensus. The amount of tokens sold by the fund company is almost 3.1 million ETHPoW. The incident caused an uproar in the crypto community, which accused Grayscale of dumping.
Our assets $ETH & $GDLC have passively received rights to the forked ETHPoW tokens. To the extent practicable, we will seek to sell these tokens and distribute the net cash proceeds to stockholders on the record date.
Read the important information in our bulletin: https://t.co/0subq36to0
– Grayscale (@Grayscale) September 16, 2022
As stated in the company’s press release, both the fund and the foundation will transfer the rights to all ETHPoW obtained as a result of the Merge to Grayscale Investments, which will sell them within a maximum of 180 days. Profits from the sale of tokens are distributed to shareholders.
In the same announcement, Grayscale Investments addresses the issue of lack of liquidity in the ETHPoW market. Since the Ethereum proof-of-work network was launched only yesterday, September 15, there is uncertainty about its presence on all platforms and the adequacy of their liquidity, the company notes. In addition, Grayscale says, there are concerns about the token’s high volatility, which also reveals the impossibility of predicting the price at which they will be sold.
ETHPoW success probability
At the moment, ETHPoW is more of a mystery because no one can say exactly what the future holds for this asset. Nevertheless, blockchain developer and Emerald founder Igor Artamonov, who was involved in Ethereum Classic, evaluate the chances of a fork so small.
Having been involved in the release of Ethereum Classic, I decided to take a look at how Ethereum PoW works. Well, their chances are slim, and let me tell you why 🧵 1/9
– Igor Artamonov (@splix) September 12, 2022
In his detailed explanation, Artamonov claims that the ETHPoW developers are managing the project poorly and that unless someone more professional joins them soon, the end will be sad. A great opportunity wasted due to poor implementation, the developer sums up.