- It was disclosed that the transactions were motivated by a desire to raise non-crypto savings, implying that a portion of the treasury would preserve its value regardless of market swings. They’ll be able to continue funding non-core but high-leverage initiatives through a market slump in this way.
- The Ethereum Foundation recently produced a report that detailed the various allocations of cryptocurrency in its possession. Its treasury contains assets of approximately $1.5 billion. But it was the manner they were separated that was most intriguing.
- ETH received 80.5 percent of the total allocation. As of the time the report was published, this amounted to $1.294 billion worth of ETH, accounting for only 0.297 percent of the total ETH supply. Other cryptocurrency investments accounted for $11 million of the total treasury amount, or 0.7 percent.
The Ethereum Foundation has been around for a while and is in charge of distributing cash to Ethereum network projects. There is a large amount of ETH in its treasury, as well as other crypto investments, that help to fund projects. The Ethereum Foundation has published a report detailing the digital assets it owns and their monetary value.
More Than $1 Billion Of ETH Is Already On The Books
The Ethereum Foundation recently produced a report that detailed the various allocations of cryptocurrency in its possession. Its treasury contains assets of approximately $1.5 billion. But it was the manner they were separated that was most intriguing. The foundation had more ETH than other digital assets, as expected, but investments and other non-crypto assets nevertheless made up a significant portion of the treasury.
ETH received 80.5 percent of the total allocation. As of the time the report was published, this amounted to $1.294 billion worth of ETH, accounting for only 0.297 percent of the total ETH supply. Other cryptocurrency investments accounted for $11 million of the total treasury amount, or 0.7 percent.
Non-crypto assets and investments, on the other hand, accounted for 18.8% of the total, totaling $302 million. The foundation also provided an explanation on why non-crypto assets and investments were required. According to the report, it invests in these types of assets to ensure that a portion of the treasury is not affected by fluctuations in the price of Ethereum.
The majority of the foundation’s treasury holdings are still in ETH, demonstrating its commitment to the digital asset’s long-term growth. We choose to store the remainder of our cash in ETH, it explained. The EF believes in Ethereum’s long-term potential, and our ETH holdings reflect that belief.
So What Sale Just At The Top End Of The Market?
There have been claims in the previous few years that the Ethereum Foundation sold its ETH tokens at market highs. This happened in January near the pinnacle of the Ethereum market, when the foundation sold 20,000 ETH for $97 million. Following the sale, the price of the digital asset dropped, leading some investors to believe that the foundation is signaling the market’s top.
In its most recent report, the Ethereum Foundation took the opportunity to react to these charges. It was disclosed that the transactions were motivated by a desire to raise non-crypto savings, implying that a portion of the treasury would preserve its value regardless of market swings. They’ll be able to continue funding non-core but high-leverage initiatives through a market slump in this way.
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Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2022/04/24/what-did-the-ethereum-organizations-treasury-comprise/