Ether price has dropped during the last weeks and months and people are starting to look negatively toward the future of ETH. Some of the comments that we have heard from experts are related to the fact that companies and projects are selling their ETH in order to finance the development of their products and services.
Do Projects Need to Sell their ETH?
But there are some projects that do not need to sell their funds in order to keep investing in the ideas or products that they wanted to develop.
Martin Köppelmann, Founder of Gnosis.pm, a prediction market platform based on Ethereum, said that Gnosis can continue to finance itself without selling ETH for the next 5 to 7 years.
Mr. Köppelmann explains that he cares about the usage of decentralized applications. The main number that people should be looking at is the number of users that are enjoying different dApps.
About this, Köppelmann wrote:
“The numbers we care about is the usage of decentralized applications. And as a next step, the number to look out for is DAPPs that seamlessly interact with each other and draw a benefit from being on the same platform. As a side effect, ultimately the price of ETH will then be a function of the demand for the use of applications in this reliable, open, and interlinked environment.”
At the same time, he said that it is not important how many dApps are deployed or the number of transactions the dApps process. It is important to take into account how many dApps are created and use smart contracts from other dApps.
Furthermore, he explained that as they have decided to work using the Ethereum platform, their main goal is to help it grow.
The company has decided to implement a web3/Ethereum first strategy that will have the following steps:
- They will be using ETH stored in the reserve for CDPs on Maker
- They will be giving control to DAOs
- They will be posting their blog posts on Akasha once it is on Mainnet
- They will be encouraging all Gnoseers to try and use dApps and products form the ecosystem
In addition to it, they will be tweeting first on Peepeth, creating bounties on different ETH bounty sites, and using prediction markets to analyse whether they are on track or not with their milestones.
“Vice versa we will spend more time making sure that it gets as easy as possible to use what we contribute to the ecosystem,” reads the blog post written by Martin Köppelmann. “The Safe to interact with DAPPs safely and without Ether. The DutchX for contracts as a token price feed and token conversion mechanism, and of course prediction markets!”
At the moment of writing Ethereum is the second most valued virtual currency in the market with a market capitalization of $30 billion dollars.