Grayscale, a leading digital asset management company, issued a press statement on September 16 announcing that the company has set September 26 as the record date for the distribution of rights for the ETH Proof-of-Work (PoW) tokens. The rights of the product to ETHW tokens will be transferred to Grayscale Investments on the record date, at which time Grayscale will assume the position of agent for the product that is eligible for the ETHW tokens and will take over responsibility for managing those rights.
According to the company, the Trust is entitled to a claim on more than 3 million ETHW tokens, while the Fund is entitled to a claim on 40.6 million ETHW tokens. It is the company’s intention to first purchase the tokens and then sell them within a time frame that will most likely not surpass one hundred and eighty days. Nevertheless, the company said that it would have complete autonomy over the manner in which it chose to sell the tokens and that it had the option to choose not to sell them at all.
If it decides to sell the tokens, the company will first deduct any markup fees or other costs that are essential for the sale before distributing the remaining cash earnings to the shareholders of the product. It is anticipated that the ETHW tokens will be distributed as airdrops after the successful completion of the ETH hard split. In spite of the fact that there was considerable interest in the hard fork that Chandler Guo was leading before the merge, both the network and the asset got off to a somewhat shaky beginning.
ETHW token value declines
On CoinMarketCap, one ETHW token is currently worth $9.585. This represents a drop of 83.3% compared to the listing price of $58.54 that it had on September 3. Furthermore, it has dropped by more than 20% since it was first made public on September 15. This was even brought up in the press release that Grayscale distributed, which stated that “due to uncertainty and the potential for significant volatility in prices, it is not possible to predict the value of rights to ETHPoW tokens.”
However, the ETHW are still IOUs, and users who migrate to the hard forks in the future will have the value of ETH reflected in the new tokens after the hard forks are complete. However, there are still questions about which ETH proof of work token will be included in the listing. The majority of exchanges have said that they would examine each coin on an individual basis. However, Poloniex has already made the announcement that it would offer EthereumFair (ETF), a chain that has been forked and is backed by ClassZZ and BitCoke, as its basic Ethereum PoW coin.
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