CoinShares chief calls ETH “The Merge” as a ‘buy the rumor sell the news’

The chief strategy officer of CoinShares shared his opinion on the ongoing efforts by the Ethereum developer team to merge the Ethereum blockchain to the Beacon chain and possible negative outcomes.

Ethereum is the second biggest Cryptocurrency by global market value. The backend technology of the Ethereum blockchain works on Proof-of-work consensus. Under the “TheMerge” upgrade plan, Ethereum developers are working hard to shift the Ethereum blockchain network from Proof-of-work to Proof-of-stake Consensus, to make the Ethereum network highly efficient. The majority of the crypto experts are looking at Ethereum’ “TheMerge” as an investment opportunity, but this case is not the same for all we experts.

On 22 August, Meltem Demirors, the CSO of digital assets management firm CoinShares, appeared in an interview with CNBC’s Squawk.

"With #Bitcoin we've seen a lot of buying on dips," says @Melt_Dem. "While internally there's a lot of enthusiasm within the #crypto community around the merge… I don't think there's a lot of new capital coming in to buy #Etherium on these changed fundamentals." pic.twitter.com/8KBiRHfT1f

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— Squawk Box (@SquawkCNBC) August 22, 2022

Through the interview, Meltem said that people are eager and hoping with the Ethereum Merge upgrade work because it will overall reduce the supply of ETH coins in the Ethereum blockchain network.

“While internally there’s a lot of enthusiasm within the crypto community and Ethereum community around the Merge as an event that will dramatically reduce supply while potentially driving demand.”

Opposite to such excitement among the crypto investors & other Ethereum proponents, Meltem believes that there is another negative side to this Merge upgrade plan.

Meltem said:

“One of the realities is on the macro side people are worried about rates, about macro. A lot is going on.”

CoinShares chief also said that she doesn’t think that there may be something unique because of the change in technology because overall it will not bring more increment in market value. 

She emphasized the negative sides, which may impact the expectations of Ethereum buyers & lovers. And further, she said that the Merge has been a buy the rumor sell the news situation. 

Earlier this, crypto analytic platform Messari raised questions on the Ethereum Merge plans and claimed that it will overall reduce the decentralized nature of the Ethereum blockchain network. 

Messari noted that 65% of nodes of ETH are deployed on a centralized data center and 69% contribution in 65% is coming from Amazon Web services (AWS), which means Amazon owns 53.7% share in the ETH node contributions.

Crypto needs to decentralize.

Three major cloud providers are responsible for 69% of the 65% of @Ethereum nodes hosted in data centers.

Of the estimated 95% of @Solana nodes hosted in data centers, 72% are hosted with the same cloud providers as @Ethereum. pic.twitter.com/oK08c3G6Of

— Messari (@MessariCrypto) August 18, 2022

Read also: Nike generates more than $185M in crypto NFTs

CoinShares chief calls ETH “The Merge” as a ‘buy the rumor sell the news’

 

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