Grayscale Postpones Date For ETHPoW Review And Sales Decision

Share This Post

Following the upgrade, Grayscale, the world’s largest digital asset manager, planned to review and decide whether to sell the former PoW system tokens. But in a recent report, the company noted that it is extending its review.

In September 2022, the Ethereum blockchain network moved from its former Proof-of-Work system to the current Proof-of-Stake consensus mechanism. The move was necessary as the PoS consensus protocol is not energy-intensive but more secure and valuable for deploying new scaling solutions.

Grayscale Extends ETHPoW Review

According to Grayscale’s announcement, the review extension will last 180 days. This will give the company ample time to decide the manner, the time, and the possibility of selling ETHPoW – the asset after the network’s Merge in September 2022.

The asset manager cited the environmental concerns surrounding PoW, which is high energy consumption levels to validate transactions, as a critical motivator for the review. Moreover, the firm is also concerned about the uncertainty of trading venues and crypto asset custodians. It noted in the announcement that the trading venues are still not established for the EthereumPoW tokens.

Based on the report, the price of the ETHPoW may fluctuate if the crypto asset custodians support the tokens or if there’s a notable development in the trading markets.

Grayscale Postpones Date For ETHPoW Review And Sales Decision

Meanwhile, Grayscale’s review is a crucial step in adopting PoS, as the asset manager holds a significant amount of Ethereum in its Grayscale Ethereum Trust. It’s possible that through the review of ETHPoW, other major institutions will also reconsider their stance on the proof-of-work system.

Ethereum Forks Into Two Blockchains

The Ethereum network completed its Merge in September 2022, a significant upgrade. Following the Merge, the network now operates on a PoS consensus algorithm, with notable differences from the former PoW.

However, some of the community members seemed to prefer the mining system of the PoW model. This resulted in the network forking into two blockchains – EthereumPoW and the major Proof-of-Stake network.

While the ETHW may benefit community members who prefer to mine through the system, it’s also challenging for digital asset companies that offer exposure to only Ethereum. This is particularly true as some investors might desire exposure to EthereumPoW.

Meanwhile, some companies are already contributing to the challenge by planning to provide a new ETP (exchange-traded product) to facilitate investors’ exposure to EthereumW. However, given the uncertainty of its sustainability, the new ETP will serve as a backbone for the ETHW.

Meanwhile, the extension of Grayscale’s review is considered a positive step for ETH and the cryptocurrency industry as a whole. As the network continues to develop on its PoS system, the adoption of this consensus mechanism by significant institutions such as Grayscale will likely increase over time.

Featured image from Pixabay and chart from Tradingview.com

Read Entire Article
spot_img

Related Posts

Bitcoin Completes ‘End Run,’ Analyst Says – Here’s What It Means

Bitcoin (BTC) took a nasty spill over the weekend Plunging to a gut-wrenching $60,850 before staging a partial recovery to hover around $64,500, this sudden price drop has left the crypto community

ETF Analyst Offers Sober Outlook on Newly Approved Hong Kong Bitcoin ETFs; Challenges $25B Inflow Estimate

Following Hong Kong’s authorization of the region’s first spot bitcoin and ethereum exchange-traded funds (ETFs), Bloomberg’s senior ETF analyst Eric Balchunas shared his

Bitcoin Rebounds After Nearing Cost Basis Of Short-Term Whales

Bitcoin has found a rebound back above the $66,000 mark following a drop towards the on-chain cost basis of the short-term holder whales Bitcoin Drawdown Had Nearly Put Short-Term Whales Under

Bitcoin Open Interest Has Cooled Off, Good Sign For Bulls?

Data shows the Bitcoin Open Interest has observed a notable cool off recently, something that could be positive for the rally’s hopes Bitcoin Open Interest Has Cooled Down From Recent

Bitcoin sees record fees in 2024 as halving approaches

Quick Take As the Bitcoin halving draws near, Bitcoin activity is witnessing a significant uptick in fees and hash rate Fees On April 12, Bitcoin recorded its highest one-day fees in 2024, reaching

Short Sellers Target Bitcoin Miners as Reward Halving Nears, $2 Billion at Stake

A recent report highlights that the collective short interest in stocks from 15 bitcoin mining companies has approached the $2 billion mark The performance of these mining stocks has declined
- Advertisement -spot_img