• The Lisk Foundation announced that it will convert 1,000 BTC to ETH over the next 10 weeks in order to minimize risks associated with third parties.
• The ETH purchased will be deposited into a 2-of-3 multisig account and the project intends to retain 500 BTC to cover expenses in 2024 and 2025.
• Max Kordek outlined three main reasons behind the decision to sell BTC for ETH, which include Ethereum’s position as a smart contracting platform, its acceptable risk levels, and its staking mechanism.
Lisk Foundation Converting 1,000 Bitcoin into Ethereum
The Lisk Foundation has decided to exchange 1,000 Bitcoin (BTC) into Ethereum (ETH) over the next 10 weeks. This decision is made by Max Kordek, co-founder and CEO of the foundation in order to minimize potential risks associated with third parties.
How Will This Conversion Take Place?
The 1000 BTC will be sold in chunks of 100 BTC per week for two and a half months. The ETH purchased will then be deposited into a 2-of-3 multisig account where each board member of the Lisk foundation holds one key. Furthermore, this move is intended to bolster the foundation’s long-term treasury while 500BTC are set aside for future expenses in 2024 and 2025.
Reasons Behind This Decision
Max Kordek has outlined 3 main reasons behind this decision: Firstly, Ethereum’s position as the largest smart contracting platform aligns with their treasury goals of supporting decentralized applications (dapps). Secondly, ETH is deemed to have acceptable risks from a treasury perspective. Lastly, Ethereum’s staking mechanism may provide a sustainable long-term return on investment (ROI).
Impact On Bitcoin Prices
The Initial Coin Offering (ICO) frenzy of 2016/2017 saw Lisk gain significant recognition when they raised 14 000BTC; their native currency being ranked at 195th according to CoinMarketCap with an approximate market cap of $106 million USD. Despite this price recovery however , bitcoin miners still face reduced earnings due to halving events scheduled for 2024 which would drastically slash miner earnings as circulating supply would also gradually drop .
In conclusion , it appears that converting 1 000 BTC into ETH is seen by Max Kordek as beneficial due its smart contracting capabilities , accepted risk levels , staking mechanisms and deflationary asset qualities . All these points combined could make this an attractive option for those looking for long term returns on investment .