How Billionaire Peter Thiel Exited Ethereum Company
Peter Thiel, the renowned venture investor and co-founder of PayPal, through his Founders Fund held a 7.5% stake in ETHZilla - one of the largest firms managing the treasury of the Ethereum protocol. However, Thiel and Founders Fund have now completely exited this investment.
The reason was the collapse in the value of ETHZilla shares, which occurred against the backdrop of the Ethereum price drop and the overall instability in the cryptocurrency market. According to the source, the price of ETHZilla shares fell by more than 80% over the past 12 months.
For Peter Thiel, known for his skeptical attitude towards cryptocurrencies, the exit from ETHZilla was not a surprise. He has repeatedly expressed concerns about the 'bubble' in the digital asset market and urged investors to avoid investing in it.
The situation with ETHZilla clearly demonstrates that even major players are not insured against the risks associated with the high volatility of the cryptocurrency market. This once again underscores the need for careful risk analysis and portfolio diversification to protect against potential losses.