Mar 18, 2023

Grayscale Extends Ethereum Fork Review Period

Cryptocurrency investment firm Grayscale Investments is taking more time to decide if it should acquire and sell post-Merge forked Ethereum tokens. On March 16, the company announced that it is extending the review period to determine whether it can acquire EthereumPoW (ETHW) tokens, which emerged after Ethereum’s Merge in September 2022.

The extension of the review period is due to the uncertainty surrounding the support of ETHW tokens by digital asset custodians and trading venues. Grayscale has noted that if digital asset custodians do support the ETHPoW tokens and/or trading markets do develop, it is expected that the ETHPoW token’s value will fluctuate widely for some time.

Ethereum, the second-largest blockchain network by market value after Bitcoin, completed the Merge, a major consensus upgrade in September 2022. The upgrade moved the Ethereum network from proof-of-work (PoW) to proof-of-stake (PoS) consensus algorithm. As some people in the Ethereum community were willing to keep using the mining-based PoW Ethereum model, Ethereum has forked into two different blockchains, the main PoS-based Ethereum and EthereumPoW.

The emergence of ETHW has brought a significant challenge for crypto investment firms offering exposure to Ethereum because some investors might want to have exposure to ETHW. To provide exclusive exposure to ETHW, the European exchange-traded product (ETP) issuer ETC Group launched a new ETP. “The new ETP seems better because we just don’t know what will happen whether ETHW will succeed or not,” ETC Group founder Bradley Duke told Cointelegraph in September 2022.

In September, Grayscale also announced that its two Ethereum-related products, the Grayscale Ethereum Trust and the Grayscale Digital Large Cap Fund, declared a distribution of rights to ETHW. Each product received the tokens as a result of a fork by late September.

Grayscale’s decision to acquire and sell ETHW tokens will have a major impact on the web3 space. As such, the company is taking its time to make the right decision. The firm is currently exploring various NFT marketing strategies, such as Twitter NFT marketing, to promote the sale of ETHW tokens. Grayscale is also working with a NFT marketing agency and a web3 agency to ensure the success of its ETHW token sale.

The crypto world is eagerly waiting to see what Grayscale’s decision will be. With the right NFT promotion and marketing strategies, the firm could potentially unlock a new wave of investment in the web3 space.

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