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.Â
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too many are high with bitcoin community attention towards ETC
I fear realities like the pre-mine and TheDao have been overlooked
IMO Ethereum was way overpriced prior to the Fork and even more so now
we need more sound patient investors and less gamblers in this space
ethereum is at a discount just keep buying the dips etc wont be around for long imo.
They should give away their current holdings. Every second they keep their ETC holdings:
1) They prove that they don’t fully believe in their decision to hardfork.
2) They continue to have effectively created a double-spending for themselves.
And yes, they have to give them away. If they sell them they have just committed a scam, and set a precedent for what future shady crypto developers can get away with. In fact it may be illegal.
I agree. They killed their coin. In fact the only way I can see this coin lasting long term is by having ETC replace ETH with new developers on board.
WAY WAY overvalued.
It is naive to think that a (beta) crypto is not immutable when there is an error or exploit. What will happen after the time bomb or POS implementation? Does it seem that HF is inevitable for at least one of the twins (before 17th of June 2016)?
Hardforks have their place. They are only ever implemented in order to save a coin from a bug or major flaw. ETH didn’t have any flaw! They used The DAO (Which was an experiment) prematurely, and like sometimes happens with experiments: it failed.
then they used the hardforks to bail themselves out. This is the first time I have ever seen a major crypto developer bail themselves out with a reset button. This is pathetic that they would even claim otherwise.
What crossroads? There are 2 roads with at least 1 HF in the future. Don’t twist reality! The damage is done for ALL crypto. Ethereum is started by corporates (like R3 and so on) and its developers. If it has failed all Etx-holders should sell them for Lumens. The Stellar-blockchain supports smart contracts & POS and fights for a better earth :). If not hypocrites are on both sides and let the strongest community lead ethereum and establish its intrinsic value(s).