Billion-dollar Ethereum DAT backed by Huobi founder collapses amid market downturn
The post Billion-dollar Ethereum DAT backed by Huobi founder collapses amid market downturn appeared on BitcoinEthereumNews.com.
According to reports, the $1 billion Ethereum DAT that leading Asian crypto investors, including Huobi’s Li Lin, proposed will no longer happen, and the committed capital has been returned. Had the plans gone through, the new trust could have grown into one of the largest dedicated institutional vehicles for Ethereum accumulation, rivaling the holdings of existing funds such as BitMine, SharpLink Gaming, and Grayscale’s Ethereum Trust. Why the Huobi-linked billion-dollar DAT was called off The proposed billion-dollar DAT was expected to be a success because of the entities involved, including Li Lin, who, through Avenir Capital, has been able to build a solid track record in ETFs. Not much is known about why the project was discontinued. However, Wu Blockchain has claimed that sources familiar with the proceedings said the main reason the plan was halted was due to the market downturn that came after the sharp October 11 sell-off. The project was to be a corporate treasury vehicle with the sole purpose of accumulating and holding large amounts of ETH, a strategy similar to the one companies like Strategy, which hold Bitcoin, have employed. The person who spearheaded the effort was Huobi’s founder, Li Lin, and he had the backing of a number of Asia’s earliest and most influential Ethereum backers, including Shen Bo, co-founder of Fenbushi Capital; Xiao Feng, chairman and CEO of HashKey Group; and Cai Wensheng, founder of Meitu Inc. The project, while still under development, raised around $1 billion, including $200 million from Li’s Avenir Capital and another $500 million from Asian institutional investors such as HongShan Capital Group. The consortium was also said to be in talks to acquire a Nasdaq-listed shell company that would facilitate the structure. The treasury was expected to be a success owing to the relative success of Bitcoin and…
