$1 Billion Ethereum DAT Led By Asian Investors Shelved After Market Downturn
And Just Like That, It’s Gone!
Well, folks, hold onto your digital wallets because the $1 billion Ethereum DAT project led by some fancy Asian investors has hit the brakes faster than a cat at bath time. Yup, you heard it right! According to the delightful folks over at Wu Blockchain, the whole deal has been shelved after the merry roller coaster of market prices took a nosedive.
The Big Players in the Game
Just last month, Bloomberg was buzzing about how these heavyweights were ready to launch an Ethereum trust that would make even Scrooge McDuck raise an eyebrow. We’re talking about the likes of Li Lin, the big cheese behind the Huobi exchange, Shen Bo from Fenbushi Capital, and Xiao Feng, the head honcho at HashKey Group. Pretty impressive lineup, right? They were set to scoop up a NASDAQ-listed entity to help with this whole digital-asset treasury (DAT) thingamajig, but alas, it wasn’t meant to be.
Money Talks
The pot was hefty too; they had a whopping $1 billion backing, with Avenir Capital contributing a cool $200 million. Yes, that Avenir Capital, and guess who’s the top dog there? You got it, Li Lin from Huobi! Another $500 million was coming from Asian institutional investors. Just a regular Tuesday in the crypto world!
The DAT Drama Unfolds
So, what happened? Well, Wu Blockchain broke the news that this grand plan has been shelved, and all the committed capital is heading back to its respective investors. Talk about a plot twist! “The US$1 billion Ethereum DAT proposed by leading Asian crypto investors has been shelved,” they reported, ambiguity at its finest.
A New Perspective on Digital Assets
Now, let’s talk shop for a second. DAT companies are the new hot cakes, thanks to Michael Saylor and his crew, previously spotted favoring Bitcoin. But hold on, 2025 is strutting in with a focus on altcoins like Ethereum and Solana. BitMine, currently reigning supreme as the largest ETH DAT (after Saylor’s outfit, of course), jumped on the ETH reserve train just this June. Apparently, they accumulated a staggering 3,559,879 tokens for a mind-boggling $11.1 billion. And you thought you had a serious crypto stash!
The Market’s Mood Swing
Unfortunately, unlike BitMine, our Asia-led DAT project seems to have fizzled out before it even had a chance to shine. Why? Well, sources claim the plan crashed and burned largely due to the market’s tantrum following an intense sell-off on October 11. Ouch!
Ethereum is currently tumbling down the digital rabbit hole along with the rest of the crypto marketplace, dipping over 38% since its October high. Talk about a reality check! Even BitMine, with all its fancy coins, has watched its holdings fall into the red; they’re estimated to be worth around $10.3 billion now—7% below the cost basis. Not exactly a fairytale ending!
What’s Next?
Meanwhile, Ethereum’s average cost basis sits at a cool $2,316, as pointed out by a sharp-eyed analyst named Maartunn over on X. Surprisingly, the average investor is still reaping about a 24% profit—somehow making lemonade out of the lemons the market has been throwing. But back in the day, when Ethereum was dancing around its peak, investor profitability was riding sky-high. Now? Well, it seems momentum is cooling as the market takes a well-deserved breather. Just what we needed, right?
Oh, and did I mention Ethereum just took another 5% nosedive? Yep, it’s currently chilling at $2,880. Cheers to that!