Shares in the Sport-Wedplatform Sharplink Gaming fell by 73% on Thursday, after the company announced that it wanted to sell a large number of shares. According to CEO Joseph Lubin, however, that is a mistake, and the market interprets this action in the wrong way.
This announcement came while the company would prepare a gigantic Ethereum purchase. For that, it would like to buy 1 billion dollars from Ethereum.
Lubin and Consensys did not sell shares
According to Joseph Lubin, however, the market responds exaggerated to the announcement that his company did. The shares have not actually been sold, but have been registered for a potential resale.
Yet the market reacted with a fierce decrease for Sharplink Gaming, and Lubin will not be happy with that.
The General Counsel of Consensys, another company of Joseph Lubin, also indicates that the document “does not reflect any actual sales.” He also states that the document does not even tell news about the company. According to Corva, this news was revealed two weeks ago.
$ 1 billion in Ethereum
On May 30, Sharplink Gaming announced that it is planning to sell 1 billion dollars in normal shares. The majority of which must be used to buy Ethereum.
Ethereum developer Joseph Lubin has clarified that neither himself nor his company has sold consensys shares. Consensys was recently involved in a financing round of 425 million dollars for Sharplink Gaming, as part of a strategy to expand the Ethereum reserves.
In the meantime, an official report to the exhibition watchdog caused unrest among investors of BTCS Inc. According to CEO Charles Allen, that led to panic sales. “This creates a prison silemma,” said Allen. “Everyone is the first to try to sell before the other does. That is a classic recipe for price falls.”
However, all does not exclude a surprising turn. He suggests that the company can possibly reverse the losses by announcing a major investment in Ethereum. “If they tackle it smartly, they could send a press release tomorrow about a purchase of 1 billion dollars to Ether. That could be the spark that lets the course flare up again.”
According to Allen, such a step afterwards could turn out to be “brilliantly played”.
Source: https://newsbit.nl/sharplink-gaming-daalt-73-terwijl-ethereum-aankoop-van-1-miljard-lonkt/
