The recent success of Ethereum Classic has caused the Ethereum price to stumble a bit. At the same time, this scenario raises a lot of valid questions that pertain to both cryptocurrencies at the same time. The Ethereum Foundation holds a large amount of ETH, and also a big amount of ETC. But should they sell one for the other?
An Interesting Option For The Ethereum Foundation
Diversification of an investment portfolio is critical for just about anyone in this world. Putting all of the proverbial eggs in one basket is not the best strategy. That same principle applies to any cryptocurrency foundation, albeit it is in their best interest to ensure they have enough liquidity of their own particular coin.
All of this puts the Ethereum Foundation in an interesting spot. Thanks to the cryptocurrency’s premine, they hold a significant amount of ETH. Since the majority of this funds was allocated before the hard fork, there is an equivalent amount of Ethereum Classic associated with these balances. In a way, the ETH Foundation created new value out of thin air, just by holding on to their stash.
If the Ethereum Foundation decided to do so, they could sell off their ETC holdings and convert it to Ethereum itself. Such a move would be entirely understandable, but not necessarily in the Foundation’s best interest. After all, Ethereum Classic is gaining popularity, and the price per coin is going up.
At the same time, such a decision could fuel the rumors of how the Ethereum price is being kept afloat artificially. There is no direct evidence to back up those claims, but such a sell-off by the Foundation would certainly put things in a new perspective. Not selling the coins, on the other hand, may raise some questions as to how devoted the team is to Ethereum in the long run.
A crossroads like this is rather interesting, and the final decision will be scrutinized either way. There does not seem to be a golden path in between either solution, as the outcome will affect Ethereum and the Foundation regardless. Do keep in mind the Ethereum developers will need to be funded somehow, and funds are slowly running out at this rate. Then again, the current funding should last another six years or more.
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