Ethereum Treasury Company Sharplink has restricted the responses from investors. Decryption When the Mainnet was released last week, it will be wagering a portion of the $3.6 billion worth of ETH at Linea's Treasury Department.
The company's shares trading on Nasdaq under the SBET ticker are currently trading $15.73, or 11% less than five days ago.
And now it was with Myriad users, a forecast market owned by Myriad users. Decryption Parent company Dastan doubts Sharplink will be scooped up enough Ethereum To have one million ETH by September 16th. The company currently has 837,230 ETH in the Treasury, worth around $3.62 billion at its current price.
At the beginning of the month, the odds were flipped to 70% of users, with Sharplink, which traded as SBET, saying it won't reach 1 million ETH by September 16th. And now, pessimism is on the rise, and 82.5% of users doubt the company is quickly a milestone.
Rockawayx Chief Growth Officer Samantha Bohbot said the growing doubts about the selling price of ETH's acquisition and its pace of ETH's acquisition are likely to have something to do with aggressive issuing existing investors and diluting existing investors. Decryption.
Sharplink is raising funds to purchase ETH through stock financing and will need to issue new SBET shares. However, with each new issue, the value of the shares held by existing shareholders dilutes. The prospect that Sharplink could do that again in a way that dilutes its value, Bohbot explained that stocks are not appealing to investors.
She added that investors, which are the Digital Asset Treasury, or DAT, still seem uninterested in the prospects that their holdings will be used to generate yields.
“Now, most DAT 'investrs' should be considered more technical traders than long-term business backers,” Bobot said. “They are trading around the premiums of listed DAT stocks compared to the underlying crypto holdings, or speculate that the stock price will skyrocket along with the wider crypto rallies. Few people focus on whether DAT's premium valuations are justified by their ability to generate yields simply by holding assets.”
That doesn't mean she thinks Sharplink's plans are bad ideas. But they are long-term plays that most investors don't value at this point.
“We expect that to change. Over time, the market may distinguish between data that successfully provides attractive and sustainable yields to the Cryptocurrency Department,” Bobot said.
It is also worth noting that Sharplink has already wagered a percentage of Ethereum Mainnet's ETH holdings, and has so far won 2,318 ETH (or $10 million worth of today's price) in rewards since June. So moving ETH to Consensys' Ethereum Layer-2 network Linea could be a bigger deal for Linea stakeholders than SBET investors.
James Harris, CEO of Institutional Digital Asset Firm Tesseract, also said:
“Linea is still new and not large, so investors may be wary of smart contracts and operational risks that do not exist in more established custody staking providers, but the involvement of consensy should help mitigate this concern,” he said. Decryption. (Disclosure: Consensey is one of the 22 investors of the editor. Decryption. )
The leading Ethereum developer, Consensy, has been at the heart of Sharplink's ETH Treasury since it was first announced in May. The company led private investment or pipeline of $425 million in the round in May. As part of the agreement, Consensey CEO and Ethereum co-founder Joseph Rubin became chairman of the SBET board of directors, with Sharplink joining the Linea Consortium.
So, while Ethereum investors may be expecting Sharplink to wager on Linear for several months, as Harris noted, “yield conditions and liquidity mechanics have not yet been fully disclosed, making it difficult for institutions to assess risk rewards.”
