Max Kordek, co-founder of blockchain application platform Lisk, announced that the Lisk Foundation will exchange 1,000 $BTC into $ETH over the next 10 weeks, which will be held as part of the foundation's long-term treasury.
The Lisk Foundation will sell 100 $BTC per week to reduce risks with associated third-parties. The acquired $ETH will go into a multi-sig account. There're three reasons for the move, according to Max Kordek,
- Ethereum is the biggest blockchain platform in the world, and Lisk wants to go where blockchain applications are being built;
- $ETH is the second biggest cryptocurrency in the world, which has acceptable risks;
- $ETH enables a sustainable long-term yield, and it makes sense to go into an appreciating, deflationary, yield-generating asset.
Max Kordek said the Lisk Foundation intends to stake the acquired $ETH, but it won't happen immediately. Regarding Lisk's financial strategy for the future, he said that the Lisk Foundation will use its fiat funds in 2023, and use $BTC funds in 2024 and 2025. Beyond that, the revenue streams will sustain the Lisk Foundation for the long-term.
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