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Grayscale Postpones Date For ETHPoW Review And Sales Decision

Press Releases Crypto News Bitcoinist Grayscale Postpones Date For ETHPoW Review And Sales Decision

Following the upgrade, Grayscale, the world’s largest digital asset manager, planned to review and decide whether to sell the former PoW system tokens. But in a recent report, the company noted that it is extending its review.

In September 2022, the Ethereum blockchain network moved from its former Proof-of-Work system to the current Proof-of-Stake consensus mechanism. The move was necessary as the PoS consensus protocol is not energy-intensive but more secure and valuable for deploying new scaling solutions.

Grayscale Extends ETHPoW Review

According to Grayscale’s announcement, the review extension will last 180 days. This will give the company ample time to decide the manner, the time, and the possibility of selling ETHPoW – the asset after the network’s Merge in September 2022.

The asset manager cited the environmental concerns surrounding PoW, which is high energy consumption levels to validate transactions, as a critical motivator for the review. Moreover, the firm is also concerned about the uncertainty of trading venues and crypto asset custodians. It noted in the announcement that the trading venues are still not established for the EthereumPoW tokens.

Based on the report, the price of the ETHPoW may fluctuate if the crypto asset custodians support the tokens or if there’s a notable development in the trading markets.

Ethereum mounts on the chart l ETHUSDT on Tradingview.com

Meanwhile, Grayscale’s review is a crucial step in adopting PoS, as the asset manager holds a significant amount of Ethereum in its Grayscale Ethereum Trust. It’s possible that through the review of ETHPoW, other major institutions will also reconsider their stance on the proof-of-work system.