More than 58% of ethereum’s supply is unprofitable
“ETH, as a token, is broken,” short seller Culper Research wrote in a report, likening the asset to Netscape and Nokia.
Fridays have tended to produce the highest positive returns for ethereum, but the second-largest cryptocurrency has declined on the day.
Ethereum’s average return on Fridays over the past three months has been 0.79%, the most among any day of the week, data from crypto analytics platform Velo.xyz shows. However, the price of the token has decreased 6% in the last 24 hours to under $1,980 this Friday.
More than 58% of ethereum’s supply is now unprofitable, according to blockchain data firm Glassnode, an unfortunate climb since ethereum’s all-time high of nearly $5,000 in August.
BitMine Immersion Technologies, the largest ethereum treasury firm and holder of 4,473,587 tokens, is now a highly unprofitable entity, with a paper loss of $7.9 billion.
Meanwhile, short seller Culper Research announced it has bet against ethereum, per a Thursday report. Culper cites ethereum founder Vitalik Buterin selling, blockspace getting filled in by negligible-value spam, and increased network activity stemming from address poisoning instead of institutional transactions.
Address poisoning is a scam where attackers send tiny “dust” transactions from wallet addresses that look similar to those a victim has used before. The aim is to trick the victim into later sending funds to the fake address instead of a real one.
“Our claim is that ETH, as a token, is broken, and will not capture any of that value,” Culper said. “In the dot-com era, companies such as Netscape and Nokia built out next-generation platforms that dominated for years on end, only to be usurped by companies like Google and Apple who built on those foundations and captured all of the value.”
“We view ETH similarly and think that in the end, ETH holders will be left with little of economic substance,” Culper continued.
