Lisk Foundation To Convert 1,000 Bitcoin To ETH, Reason To Worry?
12 Mai 2023 - 1:50PM
NEWSBTC
Max Kordek, the co-founder and CEO of Lisk recently announced via
Twitter that the Lisk Foundation will convert 1,000 Bitcoin (BTC)
to Ethereum (ETH) in the next 10 weeks, which will be held as part
of the foundation’s long-term treasury. As Kordek explained in a
commentary, the Lisk Foundation wants to stake its ETH, “but it
won’t happen right away.” The project gained wider notoriety during
the Initial Coin Offering (ICO) craze in 2016 and 2017. At the
time, the decentralized apps platform raised 14,000 Bitcoin. That
sum was worth about $5.7 million at the time, making the campaign
the second most successful cryptocurrency crowdfunding to that
point. With a market cap of $106 million, the Lisk Token (LSK)
ranks 195th among the largest cryptocurrencies according to
CoinMarketCap today. At press time, LSK was trading at $0.828 and
is down 5.7% in the last 24 hours. Reasons Why Lisk Is Converting
Bitcoin To ETH Lisk Foundation will sell 1,000 BTC in chunks of 100
BTC per week to reduce risks with related third parties.
Subsequently, the purchased ETH will be deposited into a 2-of-3
multisig account, with each Lisk Foundation board member holding
one key each. Related Reading: Why Is Bitcoin And The Crypto Market
Down Today? Notably, the project will keep 500 BTC, which the
co-founder said will be used to pay expenses in 2024 and 2025.
Moreover, Kordek added that the Lisk Foundation has “about enough
fiat until the next Bitcoin halving.” According to Kordek, there
are three reasons for this move: first, the tweet states that
Ethereum is the largest blockchain platform in the world.
“Treasury-wise we want to go where blockchain applications are
being built,” Kordek wrote, emphasizing as a second reason that ETH
has “acceptable risks” from a Treasury wise point of view. Related
Reading: Winner Takes All: Bitcoin And DXY Compete For Global
Financial Dominance Third, he said, it allows for a sustainable,
long-term return (via staking). “Treasury-wise it makes sense to go
into an appreciating, deflationary, yield-generating asset,” Kordek
said. The Lisk Foundation is exchanging 1000 BTC into ETH over the
next 10 weeks and will hold onto them as part of its long-term
treasury. 🧵 Continue reading to learn more.. How: The 1000 BTC are
being sold in chunks of 100 BTC per week to reduce risks with
associated… — Max Kordek (@maxkordek) May 11, 2023 Will It Have An
Impact On BTC Price? Even though the Bitcoin and crypto market is
very illiquid due to Operation Choke Point 2.0 in the United States
at the moment, the impact on the Bitcoin price should be marginal
due to the 1,000 BTC split over 10 weeks. 100 BTC is an order size
that the market can easily digest. In the last 24 hours, the
trading volume of BTC was approximately 19.4 billion. At press
time, the Bitcoin price was at $26,388. For now, the key support is
at the 100-day Exponential Moving Average (EMA), located at
$26,227. Over the next few hours, it remains to be seen if this
support can be held, if not, the area at $25,200 comes into focus.
Featured image from iStock, chart from TradingView.com
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