EtherStrategy to Make Depositors Whole Amid Weak Demands

After attempting to replicate MicroStrategy’s Bitcoin (BTC) strategy , Ethereum-based EtherStrategy has flopped. As it stands, it is forced to refund investors who already made a deposit. 

Only 270 Ether After EtherStrategy’s Launch 

This Ethereum fund wanted to mimic MicroStrategy, as it was described as the latter’s blockchain-based, Ether-focused alternative. 

Unfortunately, it ended up with weak demands, which is evident in the 270 ETH it attracted within 3 days of launch. It is worth noting that EtherStrategy, launched on Thursday by a pair of veteran Ethereum developers, has a 10,000 ETH cap.

EtherStrategy gained traction and significant interest before this time. One of the project’s co-founders, Justin Bram, stated that a minimum of 5,000 people initially pledged to deposit about 40,000 Ether. EtherStrategy’s lapses may have been spotted had it undergone a third-party audit before its launch. 

According to a January 31 X post, EtherStrategy acknowledged, “There was not enough interest/demand to justify launching the DAO in the current state.” Therefore, it concluded that refunding depositors is the best action. 

EtherStrategy Sends Deposits to Wrong Address

This news comes shortly after the project admitted to a discrepancy in its system . EtherStrategy noted that the user interface was misconfigured during the protocol’s testing phase and before the launch’s announcement. This caused users to deposit to the wrong address. In no time, 165 ETH had already been deposited by users to the incorrect address. 

This may have been the cue that investors needed to make a U-turn, but it claimed that “The UI was fixed immediately.” Oftentimes, crypto sent to the wrong addresses becomes permanently lost. Investors are lucky that the project has considered a refund. 

MicroStrategy And its Yielding Bitcoin Strategy

On the other hand, MicroStrategy is still selling shares and acquiring more BTC. The Virginia-based firm recently revealed plans to raise $563 million through a Perpetual Strike Preferred Stock (STRK) offering. All the profits will be funneled into buying more Bitcoin and other corporate purposes.

By all means, its Bitcoin strategy has stood the test of time, especially with the coin’s value experiencing a meteoric increase.