Grayscale Investments has announced that it plans to sell all ETHPoW tokens acquired by the Grayscale Ethereum Trust and the Grayscale Digital Large Cap Fund, following Ethereum’s transition to a proof-of-stake consensus.
After Grayscale’s announcement, the company received reactions.
Grayscale Announces It Will Sell EthereumPoW Tokens
The number of tokens that asset company Grayscale will sell is approximately 3.1 million ETHPoW. This incident caused a serious backlash in the crypto community, which accused Grayscale of dumping.
Our funds $ETHE & $GDLC have passively received the rights to forked ETHPoW tokens. To the extent it is practicable, we will look to sell these tokens & distribute net cash proceeds to record date shareholders.
Read our release for important details: https://t.co/0subq36to0— Grayscale (@Grayscale) September 16, 2022
As stated in a press release from the company, both the fund and the trust will transfer the rights to all ETHPoW acquired as a result of Merge to Grayscale Investments and then sell it within a period not exceeding 180 days.
It was announced that the profits from the sale of tokens will be allocated to the shareholders. In the same announcement, Grayscale Investments addressed the issue of lack of liquidity in the ETHPoW market. The company states that there is uncertainty about its presence on any platform and the adequacy of liquidity on those platforms, given that the proof-of-Ethereum network was only launched yesterday, Sept. Also, Grayscale says there are concerns about the token’s high volatility, which makes it impossible to predict the price at which its sales will take place.
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