Digital Currency Group (DCG), the parent company of the cryptocurrency asset management company Grayscale, announced Monday it would buy Grayscale Ethereum Classic Trust shares with a total value of $50 million.
This purchase will use realizable cash on hand of DCG and comply with the provisions of Article 10b-18 of the Securities Exchange Act of 1934 (“Exchange Act”) through the decision of management whether to purchase on the open market.
At present, the digital currency group did not disclose the specific time plan of the purchased shares and specific indicators such as quantity and price. The shares purchase the authorization will depend on the current company’s realizable cash level, price, market sentiment, and other factors.
Barry Silbert founded the Digital Currency Group in 2015, a well-known investor in the blockchain field. It owns companies, for instance, Genesis (a global digital asset brokerage) Foundry (a leader in Bitcoin mining and collateral).
Ethereum Classic (ETC) is an open-source, blockchain-based distributed computing platform featuring smart contract functionality. It was officially launched in July 2016 as the hard fork of Ethereum.
According to Coinmarketcap, the Ethereum Classic ranked as the 22nd largest cryptocurrency with a market cap of $4,671,648,056.
Ethereum Classic has dropped by 12.49% within 24 hours as China intensified law enforcement against domestic crypto mining activities and related crypto trading.
Ethereum Classic (ETC) price hit an all-time high of $175 on May 6 before falling by approximately 77% to a low of $38.52, which is still the case today. During the intraday, ETC was trading at 39.85.
Although the return of ETC so far this year has multiplied by 602% from 5.68 to 39.88, higher than ETH’s 163% increase from 736.42 to 1943.25. Many crypto analysts regard the ETC rebound as similar to Dogecoin (DOGE) fanatic speculation, not wide investment based on the potential of blockchain technology.
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