Ether Capital Corporation (“Ether Capital” or the “Company”) (NEO:ETHC) announces that it has begun participating in staking on the newly launched Ethereum 2.0 network and has committed to running a validator node on the network.
Ether Capital’s validator has been running since Ethereum 2.0’s genesis block which was confirmed at approximately 7:00am ET on December 1, 2020.
Ethereum has begun the transition to a “proof of stake” protocol, where Ether holders are given the exclusive right to verify transactions and participate in consensus, thereby earning inflationary block rewards. Ethereum 2.0 has “proof of stake” as its consensus mechanism and is considered the successor to the existing Ethereum blockchain.
In order to “stake”, a minimum deposit of 32 Ether, currently valued at approximately US$20,000, must be sent from the existing Ethereum blockchain to the Ethereum 2.0 blockchain. Ether Capital has made this deposit and is currently running one validator, which is bonded by its 32 Ether deposit. The annual Ether-denominated staking return, or yield, is currently over 16%, based on the number of Ether currently staked, according to data from the Ethereum Foundation.
Brian Mosoff, Ether Capital’s CEO, said: “The launch of Ethereum 2.0 is an exciting and historic milestone in the digital asset space and we are thrilled to be part of it by running a validator. The transition to staking has been part of Ether Capital’s roadmap since inception and means that Ether holders are now able to generate an Ether-denominated return, or yield, by participating in network validation.”
“Once we see the Ethereum 2.0 blockchain running in a stable fashion over a period of time and are able to fully understand and mitigate applicable risks, Ether Capital intends to make a more substantial commitment of its Ether balance to staking,” continued Mr. Mosoff.
Ether Capital has entered into an agreement with Staked, an industry leading blockchain services provider, to run its Ethereum 2.0 validator.
Tim Ogilvie, Staked’s CEO, said: “We are excited to be working with the team at Ether Capital on running its validator. Staked has built a reputation for ease and reliability for proof of stake services and we are grateful for the trust that Ether Capital has put in us.”
About Ether Capital Corporation
Ether Capital is a Toronto-based technology company whose business strategy is to invest in projects, protocols, technologies and businesses that leverage the Ethereum ecosystem and decentralized (“Web 3”) technologies. Ether Capital is pursuing a long term business model built on three pillars: (i) investing in Ether to facilitate participation in the Ethereum ecosystem, (ii) investing in tokens or equity of other projects aimed at developing technology for decentralized applications, and (iii) ancillary blockchain services that generate income from passive assets. Founded by an experienced Board of Directors and management team, Ether Capital has the experience and relationships to support businesses and invest in industry-shifting disruptive technologies. For more information, visit http://ethcap.co/.
This press release is not an offer of securities for sale in the United States, and the securities described in this press release may not be offered or sold in the United States absent registration or an exemption from registration. The securities have not been and will not be registered under the United States Securities Act of 1933. The NEO Exchange does not accept responsibility for the adequacy or accuracy of this release.
This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements in regard to the Ethereum platform and protocol, the timing and implications of Ethereum’s proof of stake network upgrade (including launch of the beacon chain), the Company’s plans with respect to providing future updates on proof of stake developments, Ether Capital’s future plans to make a greater commitment of its Ether holdings to staking, the potential for Ether Capital to earn an Ether-denominated yield on a portion of its Ether holdings that it devotes to staking, the market for crypto-assets, the anticipated transaction settlement volume over Ethereum in 2020, and the Company’s business, plans and strategy. The Company cautions the reader not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. Generally, but not always, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “on pace”, “anticipates”, or “does not anticipate”, “believes”, and similar expressions or state that certain actions, events or results “may”, “could”, “would”, “should”, “might”, or “will” be taken, occur or be achieved.
Forward-looking statements are based on information available to management at the time they are made, management’s current plans, estimates, assumptions, judgments and expectations. These estimates, assumptions, judgments and expectations include that the COVID-19 pandemic and the response to it will not have a materially different impact on the Company’s business and assets than currently anticipated by management, that there will be an eventual recovery of global economic conditions, that Ethereum 2.0 upgrades will occur on the timelines anticipated and will contain the functionality expected by management, and other matters discussed in the Company’s materials filed with the Canadian securities regulatory authorities from time to time. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to: general business, economic, competitive, geopolitical, technological and social uncertainties; uncertainties in regard to the development and acceptance of blockchain technology and the Ethereum platform (including Ethereum 2.0), anticipated timing and impact of the Ethereum 2.0 network upgrade, that the risk that the price of Ether may materially decline, the impact of the outbreak of the COVID-19 coronavirus on the Company, and the other risk factors discussed in the Company’s Annual Information Form dated March 25, 2020, the Risk Factors section in its most recently filed management’s discussion and analysis and its other filings available on-line at www.sedar.com. Although the forward-looking information contained in this press release is based on assumptions that the Company believes to be reasonable at the date such statements are made, there can be no assurance that the forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking information. In addition, the Company cautions the reader that information provided in this press release is provided in order to give context to the nature of some of the Company’s future plans and may not be appropriate for other purposes. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update or revise any forward-looking information, except in accordance with applicable securities laws.