Sharplink Gaming, one of the largest Ethereum (ETH) treasury companies, continues to purchase ETH at full speed.
At this point, the company, which announced its new acquisition yesterday, warned about the risks associated with ETH today.
The Ethereum treasury strategy is rapidly expanding as more companies add ETH to their balance sheets. For some investors, this is seen as an investment in the future of blockchain, while for others, it’s a chance to make quick profits.
At this point, Sharplink Gaming CEO Joseph Chalom warned that companies that see Ethereum as a tool for quick returns are taking great risks.
Speaking to Bankless, Joseph Chalom emphasized that while there are ways to achieve double-digit returns on ETH, they carry significant risks.
Emphasizing that high returns are never risk-free, the famous CEO drew attention to dangers that companies often overlook, such as credit risk, counterparty risk, duration risk, and smart contract vulnerabilities.
“There’s credit risk, there’s counterparty risk, there’s duration risk, there’s smart contract risk. But I think the biggest risk is that those who are far behind will take reckless, unwise risks, in my opinion.”
According to StrategicETHReserve data, Sharplink Gaming is the second-largest public ETH holder with 837,230 ETH worth over $3.6 billion, just behind BitMine Immersion Technologies, which holds $8.03 billion in ETH.
In August, Ethereum founder Vitalik Buterin also supported Ethereum corporate treasuries but warned of the risks.
*This is not investment advice.
