Ethereum Treasury Plans Loyalty Payments to Combat Short Selling as Shares Trade Below Holding Value

The Ethereum Treasury is implementing a loyalty payment system to discourage short selling activities that are negatively impacting share value. This initiative emerges as the treasury’s shares trade at a substantial discount compared to the underlying assets they hold. The intent behind the loyalty program is to incentivize long-term investment and reduce the influence of short sellers, who are perceived to be contributing to the devaluation of the shares. Specifics of the program are being finalized, but it is anticipated to offer regular rewards to shareholders based on the duration of their holdings. Analysts suggest that this strategy could potentially bridge the gap between the share price and the treasury’s asset value, while also providing an added incentive for investing in Ethereum. The success of this approach remains to be seen, but it represents a creative effort by the treasury to address market challenges.