Sharplink (SBET), a firm specialized in sports bets, continues with its Ether accumulation strategy (ETH), Ethereum’s native cryptocurrency, to establish a treasury based on digital asset.
After acquiring 176,271 ETH for a value close to 463 million dollars, Sbet positioned itself as the firm that quotes in the stock market with the highest possession of Ether.
These purchases were confirmed after the fall in the price of Sharplink’s action, a fact that did not go unnoticed in the market.
As cryptootics reported, Sbet collapsed 70% after presenting form S-3in which the company anticipated the possible resale of 58.7 million ordinary shares. These were previously issued to more than 100 investors in a private offer in public capital (Pipe), a mechanism that allows distributing titles between accredited investors.
The first reaction of managers was clarified that it was a misunderstanding. Through a statement, Joseph Lubin, president of Consensys and Sharplink, explained that the presentation of the S-3 is a standard procedure after a pipe operation and does not imply immediate sales sales.
“The column ‘Actions possessed after the offer’ is hypothetical and assumes the total sale of the registered shares. Neither consensys nor I have sold any action,” said Lubin.
What happened is that many assumed that the presentation of this form meant an immediate and massive sale of shares, which generated panic. But, as the company explained, the S-3 is a necessary legal step after an operation Pipe, which allows you to register the titles for a possible future resale, but does not imply that the shareholders have begun to liquidate their positions.
The confusion filed in the literal reading of the document, especially in the column that estimates the actions “possessed after the offer”, which is purely hypothetical.
After the repercussions generated by the fall of Sbet, Lubin He shared a reflection in their social networks to defend the legitimacy of the ETH accumulation strategy. For him, the acquisitions of Ether, Bitcoin (BTC) and other digital assets, such as treasury strategies, represents “the first large -scale incorporation of traditional finance (tradfi) to the decentralized finance ecosystem (defi)”.
In that line, he stated: “How do we get Wall Street to be interested in decentralized protocols and in the evolution towards a more decentralized website and economy? such as business movements such as Strategy (MSTR) and SBET.
That is, Lubin points out that Mass adoption will come due to profitability. For Wall Street players to bet on decentralized protocols, they first need to see tangible benefits, measurable and comparable to traditional instruments.
That is why it puts as an example the case of Strategy, the company that runs Michael Saylor that since 2020 started with a Bitcoin accumulation strategy. Currently, it is the company that lies in the stock market with more BTC in its treasury.
It also points out that treasury strategies are an entrance door: they translate the logic of the decentralized world to a language that traditional finances can understand.
Therefore, it also says: “The change of paradigm towards an increasingly decentralized world system is accelerating.”
In simpler terms, a deeper change is being accelerated than a simple trend. Lubin points out that, as institutional actors understand and adopt infrastructures such as Ethereum, A new base layer for the economy is being consolidated.
