The crypto landscape has just experienced a big shift with a lot more capital coming into Ethereum. Ether Machine pops up as a new way to allow institutional players to use ETH, hinting at a seismic shift as crypto edges closer to traditional finance.
Ether Machine is about to be publicly traded under the ticker ETHM on Nasdaq with a massive base of over 400,000 ETH or about $1.6bn in value, and perhaps one of the largest public holdings of Ethereum.
This can almost be seen as MicroStrategy's approach with Bitcoin, but Ether Machine is already doing this differently. It doesn't simply hold ETH, it culturally deploys it, by way of smart staking, restaking, and DeFi agreements. This operational expansion beyond simply storing value is an important point of departure with other models in crypto.
Ether machine operates under three key principles. One, it returns more value to people by virtue of smart staking and restaking events, helping Ethereum with value protection while providing benefit to capital equity holders. Two, the Nasdaq listing provides a public space with defined rules and fair practices, which is valuable for emerging players. Three, it fosters the creation of other structures in Ethereum that can assist validators, consortiums, and open source issues.
Big players in crypto are already, quite literally, all in. Recently, Pantera Capital plopped down a whopping $1.5 billion, which is a massive leap of faith in this new method for using Ethereum. On many levels, this planning represents a readiness to put Ethereum at the center of its big money initiatives.
Ether machine tackles some serious problems in large-scale entry into crypto payments. It allows for clear roles, and clear processes, while managing the smart contracts. These three elements provide a framework to bridge the distributions of traditional finance with the opportunities in the new world created by Ethereum.
Going forward, Ether Machine will likely play a part far beyond its own operations. In leading the charge in smart contract-enabled, money-like steps toward Ethereum based transactions, it lays the foundation for executives to consider larger transactions with crypto. This will likely shape the way that large organizations seek to deploy their cash into crypto, encouraging a flood of savvy, cash-generating crypto initiatives.
For the Ethereum ecosystem, this is a major victory. It demonstrates that big money can do more than hold coins in their portfolio, that it can also help safeguard the ecosystem and generate revenue for investors. This mixture of interest from institutional investors, while creating ecosystem benefits, could accelerate Ethereum's emergence as a global money ecosystem.
It is vital to be clear that Ether Machine is fundamentally different from an ETF (Exchange-Traded Fund). ETFs generally track the price of an underlying asset passively, Ether Machine's capacity as a business is more active. Ether Machine is organized as a company that "does business with" ETH, rather than a financial product that tracks the price movements of ETH. The minor distinction allows Ether Machine to have more flexibility on how it utilizes its ETH and ways to generate returns beyond price appreciation.
Importantly, unlike ETFs, which will need to satisfy certain regulatory requirements in respect to their specific crypto assets, Ether Machine operates based on the typical corporate operating rules as a listed company on Nasdaq. This allows Ether Machine to provide an institutional exposure to Ethereum while simultaneously participating in the Ethereum network ecosystem through other yield producing activities such as staking. Institutions looking for something more than exposure to the price of ETH, while Ether Machine may not be an ETF initially concept, intended to present institutions with better value than a passive ETF could possibly offer in future.
Ether Machine's beginnings is a crucial moment in putting Ethereum into large, regular cash use. By merging large cash structures with digital cash making and helping the system, it begins a new spirit of thinking of cryptocurrency. With the crypto scene continuing to grow, Ether Machine's vision could lead the way for the next large wave of large, smart, cash making crypto initiatives.
For more information about Ethereum Machine, visit the platform website from the link below to know how it works.
https://ethermachine.com
The image used is from Ether Machine website.
Posted Using INLEO