The "Effect
#Saylor " is running out on
#Ethereum Peter Thiel's fund liquidates its bet on
#ETHZilla and flees from the pure treasury model
The end of the hype of "Proxy Stocks" and the shift towards real world assets
#RWA Not everything is accumulation in the crypto ecosystem. While companies like
#strategy resist, the "single token treasury" model has just received a reality check. Peter Thiel's Founders Fund, one of the heaviest names in Silicon Valley, has completely capitulated in its bet on ETHZilla, sending a seismic signal to Ethereum investors.
Total Liquidation: Thiel's risk arm reduced its stake from 7.5% to zero in just a few months. The total exit of an investor of this caliber suggests a loss of confidence in the model of using public companies simply to accumulate Ether.
Panic and Debt: Unlike Michael Saylor's "diamond hand," ETHZilla panicked during the peaks of October and December, liquidating over $114 million in ETH to repurchase shares and pay convertible bond debts.
From Speculation to Engines: In a surreal twist, the company is abandoning token hoarding to launch ETHZilla Aerospace. Its new business will offer tokenized shares of leased jet engines, moving towards the Real World Assets (RWA) sector.
The Failure of the "Crypto Pivot": ETHZilla, which emerged from a failed biotech (180 Life Sciences), demonstrates the risks of companies radically changing their business model towards cryptocurrencies without a solid financial structure to withstand volatility.
$ETH