Notes from Grayscale’s Ethereum Classic (ETC) investment thesis

I read through the investment thesis PDF yesterday and wanted to share some relevant notes. I sold more than 90% of my ETC a month after the hard fork, so I hold a negligible amount relative to my overall crypto portfolio and don’t have plans to increase my ETC position. I am very bullish on ETH even after its recent price run-up.

Notes:

  • concentrates on two aspects: store of value (ETC as silver / platinum to BTC’s gold) and enabling a payments and smart contracts layer for the IoT
  • liked this line: “Ethereum was designed to be the next iteration of operating systems like Apple iOS or Microsoft Windows, embedded with the enhanced capabilities of blockchain technology.”
  • they note, and I didn’t realize, that less than 6% of all ETH outstanding voted on the hard fork issue
  • ETC strengths (relative to ETH):
    • truly trustless protocol (ie no hard fork)
    • no PoS risk, will wait until ETH implements it first and then assess
    • hard cap on ETC supply; currently 89M outstanding, will never exceed 230M (likely closer to 210M)
    • more decentralized development process unlike Ethereum which is driven by Vitalik and the Ethereum Foundation
  • ETC risks:
    • the Ethereum Foundation sold 90% of their ETC but still hold a substantial amount
    • the DAO hacker still holds 4% of all ETC in a known wallet address

Interesting report and while I personally won’t invest in ETC, was good to understand Barry and Grayscale’s perspective.