Max Kordek, the co-founder and CEO of Lisk recently via Twitter that the Lisk Foundation will convert 1,000 Bitcoin (BTC) to Ethereum (ETH) in the next 10 weeks, which will be held as part of the foundation’s long-term treasury. As Kordek explained in a commentary, the Lisk Foundation wants to stake its ETH, “but it won’t happen right away.”
The project gained wider notoriety during the Initial Coin Offering (ICO) craze in 2016 and 2017. At the time, the decentralized apps platform raised 14,000 Bitcoin. That sum was worth about $5.7 million at the time, making the campaign the second most successful cryptocurrency crowdfunding to that point.
With a market cap of $106 million, the Lisk Token (LSK) ranks 195th among the largest cryptocurrencies according to CoinMarketCap today. At press time, LSK was trading at $0.828 and is down 5.7% in the last 24 hours.
Reasons Why Lisk Is Converting Bitcoin To ETH
Lisk Foundation will sell 1,000 BTC in chunks of 100 BTC per week to reduce risks with related third parties. Subsequently, the purchased ETH will be deposited into a 2-of-3 multisig account, with each Lisk Foundation board member holding one key each.
Notably, the project will keep 500 BTC, which the co-founder said will be used to pay expenses in 2024 and 2025. Moreover, Kordek added that the Lisk Foundation has “about enough fiat until the next Bitcoin halving.”
According to Kordek, there are three reasons for this move: first, the tweet states that Ethereum is the largest blockchain platform in the world. “Treasury-wise we want to go where blockchain applications are being built,” Kordek wrote, emphasizing as a second reason that ETH has “acceptable risks” from a Treasury wise point of view.
Third, he said, it allows for a sustainable, long-term return (via staking). “Treasury-wise it makes sense to go into an appreciating, deflationary, yield-generating asset,” Kordek said.
//twitter.com/maxkordek/status/89363970
Will It Have An Impact On BTC Price?
Even though the Bitcoin and crypto market is very illiquid due to Operation Choke Point 2.0 in the United States at the moment, the impact on the Bitcoin price should be marginal due to the 1,000 BTC split over 10 weeks.
100 BTC is an order size that the market can easily digest. In the last 24 hours, the trading volume of BTC was approximately 19.4 billion.
At press time, the Bitcoin price was at $26,388. For now, the key support is at the 100-day Exponential Moving Average (EMA), located at $26,227. Over the next few hours, it remains to be seen if this support can be held, if not, the area at $25,200 comes into focus.
BTC price falling deeper, 1-day chart l Source:
Featured image from iStock, chart from TradingView.com
Jake Simmons, a dedicated crypto journalist, has been passionate about Bitcoin since 2016 when he first learned about it. Through his extensive work with ktsl888.com and Bitcoinist.com, Jake has become a trusted voice in the crypto community, guiding newcomers and seasoned enthusiasts alike towards a deeper understanding of this dynamic field.
Read more
His mission is simple yet profound: to demystify Bitcoin and cryptocurrencies and make them accessible to everyone.
With a professional career in the Bitcoin and crypto scene that began right after graduating with a degree in Information Systems in 2017, Jake has immersed himself in the industry. Jake joined the NewsBTC Group in late 2022. His educational background provides him with the technical prowess and analytical skills necessary to dissect complex topics and present them in an understandable format. Whether you are a casual reader curious about Bitcoin or an investor seeking to navigate the latest market trends, Jake’s insights offer valuable perspectives that bridge the gap between complex technology and everyday usage.
Jake is not just a reporter on technological trends; he is a firm believer in the transformative potential of Bitcoin over traditional fiat currencies. To him, the current financial system is on the brink of chaos, propelled by unchecked government actions and flawed Keynesian economic policies. Drawing from the principles of the Austrian school of economics, Jake views Bitcoin not merely as a digital asset but as a crucial step towards rectifying a failing monetary system. His libertarian views reinforce his stance that just as the church was separated from the state, so too should money be freed from governmental control.
For Jake, Bitcoin represents more than just an investment; it's a peaceful revolution. He envisions a future where Bitcoin fosters a sustainable and responsible financial framework for generations to come. His advocacy is not about opposition but about evolution, about laying the groundwork for a system that prioritizes transparency and equity over secrecy and inequality.
As a journalist, Jake’s articles are crafted with the precision of a scholar and the passion of a true believer. He provides not only news but also thoughtful analysis that connects the dots between daily developments and larger economic theories. His work is a beacon for those lost in the technical jargon often associated with crypto discussions, illuminating the practical implications and benefits of these technologies.
In summary, Jake Simmons is not just reporting on a revolution; he wants to be part of it, fully committed to enhancing public understanding and adoption of Bitcoin and cryptocurrencies. His work is more than just a collection of articles; it’s a resource, a guide, and a companion for anyone ready to explore the potential of this digital frontier. Whether you are taking your first steps into crypto or are a veteran looking to stay on top of the latest trends, Jake’s insights provide clarity and foresight in an often unpredictable industry. Join him on this journey to reshape the world of finance, one post at a time.
You can engage with his latest takes on Twitter: @realJakeSimmons.
Close
Disclaimer: The information found on NewsBTC is for educational purposes
only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any
investments and naturally investing carries risks. You are advised to conduct your own
research before making any investment decisions. Use information provided on this website
entirely at your own risk.
