Grayscale Investments, a top crypto investment firm, will take more time to consider purchasing and selling Ethereum tokens post-Merge fork. They plan to assess the market environment to determine if they can acquire EthereumPoW tokens.
A Hold On EthereumPoW Token Transactions
As per the press release, Grayscale Ethereum Trust, the largest digital currency asset manager globally, has declared a distribution for the ETH Proof of Work tokens received from the Ethereum blockchain fork in September 2022.
Grayscale Investments was appointed as an agent on behalf of the record-date shareholders, planning to acquire and sell the ETHPoW tokens within 180 days from the Record Date.
However, due to the trading venues for ETHPoW tokens not being broadly established and continued uncertainty regarding digital asset custodians’ support, Grayscale has decided to extend the review period.
The company needs more time to evaluate whether it can acquire the tokens and if trading markets with meaningful liquidity will develop.
The market’s uncertainty and the potential for significant volatility in ETHPoW token prices make it impossible to predict whether Grayscale, as an agent, will be able to acquire the tokens or the value that it will be able to realize from the sales.
There is no guarantee regarding the prices of ETHPoW tokens that may be obtained if Grayscale decides to sell them, and the tokens’ value may either rise or fall following their sale by Grayscale acting as an intermediary.
Grayscale Investments emphasized that it acts only as an agent of the Record Date Shareholders, not as a sponsor or manager of the Products. The company needs to take a cautious approach, given the unpredictability of the market and the potential risks associated with investing in cryptocurrency.
Nevertheless, Grayscale Investments’ decision to extend the review period for acquiring and selling post-Merge forked Ethereum tokens shows the company’s commitment to careful evaluation and cautious investment strategies in the volatile cryptocurrency market.
While there is potential for significant gains, the market’s uncertainty and volatility make it necessary to proceed cautiously.
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