SharpLink Treasury Push Will Be ‘White Swan Event’ for Ethereum Adoption, Says CEO
SharpLink Gaming’s co-CEO is pushing back on concerns that the crypto treasury trend will negatively impact the industry, telling Decrypt that it will not be the black swan event that drags down the crypto market this cycle, akin to the FTX collapse of the past.
Rather, the recently appointed leader for the publicly traded company—which has rapidly amassed over $3.7 billion worth of Ethereum—believes it will be a positive “white swan event“ that brings institutional ETH adoption to levels never seen before.
Joseph Chalom told Decrypt that the firm is putting Ethereum on the radar of non-crypto companies and educating them on the potential of the network. As such, he thinks it’s “inevitable” that more big players will adopt Ethereum as stablecoins and tokenization become mainstream.
“When they start realizing that they can reduce their capital requirements for trading, when they think they can reduce the risk involved in trading and transacting, and moving money, I think it’s going to be inevitable,” he explained. “The white swan event is: We’re explaining to users what the potential is, and you’re starting to see that adoption.”
The comments come amid growing concern that the surging crypto treasury company trend could end in disaster, with fears intensifying at the same pace as the trend’s growing popularity as bears cite the huge amounts of tokens the biggest firms are accumulating.
SharpLink, at the time of writing, holds 837,230 ETH, or approximately 0.69% of the total circulating ETH supply—raising concerns about whether they’d ever sell.
“We are not sellers of Ethereum. We are accumulators of Ethereum,” Chalom told Decrypt. “And if there are moments that you need liquidity, you can raise liquidity through debt instruments. You could do stock buybacks. So our intent is not to sell our Ethereum. It’s a reserve asset, not a trading asset.”
This approach was pioneered by Michael Saylor’s Bitcoin treasury company, Strategy, previously known as MicroStrategy. The one-time business software company has raised capital via debt instruments such as multiple rounds of convertible note offerings, and continued to stockpile BTC—now holding over $72 billion worth.
Consequently, users on Myriad Markets—a prediction market developed by Decrypt’s parent company DASTAN—see a more than 94% likelihood that Strategy will not sell any Bitcoin this year.
Strategy Could Buy as Much as 7% of Bitcoin Supply, Says Michael Saylor
As a result, Chalom categorically ruled out the crypto treasury trend being the black swan event of this cycle—a term for a rare event that has a severe impact on the market, such as the FTX collapse.
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