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Ethereum 2.0 Sees $10 Million Stake from Dubai-Based Investment Firm


beincrypto.com 2020-11-19 10:09
Reading time: ~3 m

Staking on the Ethereum 2.0 deposit contract has seen a slow start and has been mostly limited to a few whales and industry insiders. The tide seems to be turning though as major investment firms are now beginning to take notice.

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Dubai’s IBC Group has announced an investment of $10 million which equates to a stake of around 21,000 ETH in the upcoming launch of Ethereum 2.0. IBC Group Limited is a private equity investment company that dabbles in real estate, art, and future technologies.

Up to this point, there have only been a handful of crypto whales, including co-founder Vitalik Buterin, that have staked on the deposit contract. The slow uptake has resulted in just 20% of the target being staked with less than two weeks to go before the proposed genesis date.

Joint Investments in ETH 2.0

According to reports from the region, the investment will be made in partnership with Canada-based CanETH, an institutional-grade staking service for holders of Ethererum.

The decentralized global network offers staking for investors with a mission to provide a simpler way for regular users to get involved with the ETH 2.0 movement.

Canadian crypto miner Dwain Pereira of CanETH Pool cited rising energy consumption with proof-of-work protocols and better incentives for investors with proof-of-stake as primary reasons for choosing Ethereum.

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Dubai-based entrepreneur and chairman of IBC, Khurram Shroff, stated;

“We are very excited by the ‘Proof of Stake’ concept proposed for the Ethereum 2.0 smart contracts and are locking up 20,000 ETH which is a one way trip till Phase 2, this lockup shows our confidence in ETH2 and dedication to the Beacon Chain.”

The report added that Shroff’s ‘CanETH’ address will send three tranches totaling 21,984 ETH for a total of 687 validators, currently valued at around $10 million.

Movers and Stakers

Bison Trails has been breaking down the details of the current addresses that have staked the existing 104,384 ETH into the deposit contract. It noted that one whale deposited 17,088 ETH on Nov 14, which explains the large increase in initial deposits. It revealed that this was likely accrued three years ago;

“They appear to have acquired all of this ETH (and likely more) from many different exchanges during the 2017 bullrun when ETH was trading at $300.”

It noted that two other whales deposited over 5,000 ETH each that was also accumulated three-to-four years ago, adding that Ethereum OG’s were and still are believers in its vision, whether you call it proof-of-stake, Serenity, or ETH 2.0.

At the time of press, Ethereum was changing hands for around $466 but some analysts are eyeing a big move to $800 before the year is out.


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