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Grayscale Postpones Date For ETHPoW Review And Sales Decision


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. Don’t wait! Jump on this Crypto Deal and get a 150% Welcome Bonus plus 100 Free Spins on your deposit today! Related Reading: Bitcoin Price Nears $28,000 As BTC Hurtles To Its Highest Level Since June 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.

Related Reading: 21Shares Delists Terra ETP, Terminates 5 Other Crypto ETPs Amid Low Investor Demand 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. BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner? 570% up to 12 BTC + 300 Free Spins for new players & 1 BTC in bonuses every day, only at Wild. io.

Play Now! Ethereum mounts on the chart l ETHUSDT on Tradingview. com 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 Share Tweet Share Share Sign Up for Our Newsletter! For updates and exclusive offers enter your email.

Sign Up I consent to my submitted data being collected and stored. Leave this field empty if you’re human: Eli Dambell Eli brings an eclectic point of view to market analysis. He was previously a brokerage director and online trading educator.

Currently, he acts as a commentator across various asset classes, including Crypto, Stocks and FX, whilst also a startup founder. Related Posts Ex-Ethereum Foundation Developer Joins Polygon 22 hours ago Ethereum Sharks Accumulated In Past Year, But Whales Sold: Santiment 1 day ago Ethereum Deflation Hits Record High Six Months After Merge, What This Means For ETH 4 days ago Shanghai Upgrade Hard Fork Is Now Slated For April, Says Ethereum Dev 2 weeks ago Bottom Signal? Bitcoin, Ethereum Profitability Hit Three-Month Lows 3 weeks ago Ethereum Shanghai Moves Forward, But Core Dev Sees “Road Yet Long” 3 weeks ago.

From: bitcoinist

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