00:00Tell us a little bit more about ETH Zilla. Do they have any other business beyond being a digital asset company?
00:07No, not really. Like many other treasury companies that started shifting focus earlier this year,
00:14this company doesn't have any other operating businesses.
00:18So the primary purpose of this company is to accumulate Ether and innovate to be like a hedge fund-like proxy in the stock market.
00:27And it's interesting. We know that there's a lot of these crypto treasury companies out there,
00:31a lot of them coming to the market just this year.
00:34But it also seems like this is also the year where the trade stopped working.
00:39What exactly happened here?
00:40Yeah, so I think there are a couple of reasons, right?
00:43So the first reason is they're just like an influx of such companies.
00:48It's really hard to actually tell one from the others.
00:53So, you know, like they don't have a lot of differentiating strategies.
00:57So a lot of competition within this space.
00:59Secondly, we're seeing crypto assets are having like a prolonged decline compared to earlier this year.
01:06So if the tokens are not doing well, even the holders of the tokens, of course, they're going to follow the, you know, the trajectory of the tokens.
01:13That makes total sense. In terms of the fact that these companies exist, they're out there, what impact would these types of companies have on the market moving forward?
01:22So earlier you mentioned the volatility, you know, the low volatility across the derivatives market.
01:28And then we're also seeing very shallow marketing, you know, thin liquidity because we're seeing a lot of selling pressure from long-term holders.
01:35At the same time, not a lot of demand to absorb that.
01:38So towards the end of the year, we're also in the holiday season, which is typically very shallow for the market.
01:45So if there are any type of sales from this cohort, it's going to be a major headwind.
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