Crypto asset manager Grayscale Investments announced that it will sell all its ETHPoW tokens as Ethereum moves to the PoS Blockchain. ETHPoW price lost 20% in a short time after the news. Meanwhile, the altcoin market is busy making up for the recent drop.
Grayscale Investments sells all its ETHPoW tokens
Grayscale filed with US regulators today to sell ETHPoW tokens. ETHPoW was created as a “fork” following the major software update merge of the Ethereum network that was completed on Thursday. ETHPoW was awarded to Ethereum holders when the fork took place. As a result, according to a press release, the Grayscale Ethereum Trust currently holds over 3 million ETHPoW tokens and the Grayscale Digital Large Cap Fund 40,000.
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
According to Grayscale’s press release, both the fund and the trust will transfer the rights to all ETHPoWs acquired as a result of Merge to Grayscale Investments. The company then announced that it will initiate sales transactions within 180 days. However, profits from token sales will be distributed to shareholders. Grayscale Investments also covers the issue of ETHPoW market liquidity in the same announcement. Considering that the PoS Ethereum network only launched on September 15, there is uncertainty about its presence and the availability of liquidity on any platform, according to the company. There are also concerns about the high volatility of the token, which makes it impossible to predict the price at which it will be sold, according to Grayscale.
What is ETHPoW? Why is it important for the altcoin market?
The EthereumPoW network is a fork of the Ethereum network. In simple terms, a fork drastically changes the functionality of the Blockchain network. EthereumPoW was born as a small but vocal group of the crypto community believed that the network should adhere to the PoW consensus mechanism. Most of them are miners who want to keep their income when Ethereum switches to PoS mechanism on September 15th. In recent months, prominent crypto miner Chandler Guo and others have campaigned for ETHW, claiming that Ethereum 2.0 will continue.
The native token of the EthereumPoW network is ETHW. However, this is only supported by some exchanges. Individuals can trade on these exchanges with the token available for spot trading on exchanges such as FTX, ByBit, and BitMart. The EthereumPoW team has released an update to accompany the mainnet launch. It did, however, inform readers of some changes and fixes. Since its launch, more than 1.7 billion transactions have been processed. The total number of addresses with ETHW is currently over 254 million.
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