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    Nidhi is a Certified Digital Marketing Executive and Passionate crypto Journalist covering the world of alternative currencies. She shares the latest and trending news on Cryptocurrency and Blockchain.

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SharpLink CEO Chalom Warns Companies Against Risky ETH Yield Chasing

Story Highlights
  • Sharplink’s Joseph Chalom warns treasury firms against risky yield-chasing

  • He notes credit, counterparty and smart contract risks 

  • Sharplink expands ETH treasury to over 837K ETH, worth $3.6 billion

The ETH treasury space is expanding rapidly as more companies add Ether to their balance sheets. For some, this is a bet on the future of blockchain. But for others, it is a chance to chase quick profits.

Sharplink Gaming co-CEO Joseph Chalom has issued a warning that companies treating Ether as a quick-yield machine are taking on big risks.

Let’s find out why he thinks this strategy could backfire.

Chalom Warns Against Risky ETH Yield Chasing

In a recent interview with Bankless, Chalom touched upon the risks in the ETH treasury space. 

“I think the biggest risk is that people who are far behind are going to take risks that I don’t think are prudent,” he said. 

Just as in traditional finance, some Ethereum treasury players are pushing for higher returns while convincing themselves those extra gains are safe. Chalom disagrees. 

He pointed out that high returns are never free of risk and highlighted the dangers companies often overlook like credit risk, counterparty risk, duration risk, smart contract vulnerabilities.

“The beautiful thing about ETH treasury companies is they’re almost infinitely scalable,” he said adding that ETH treasury companies can grow efficiently without large teams, but overbuilding during high prices could create problems if the market dips.

Despite these risks, SharpLink itself has committed heavily to Ethereum but with a more measured strategy.

The company now holds 837,230 ETH, worth over $3.6 billion. Since launching its treasury strategy, it has earned 2,318 ETH in staking rewards.

Chalom welcomed the growing interest in the Ethereum treasury space, calling it “coopetition”, healthy competition that validates Ethereum’s long-term potential.

SharpLink aims to stand out by building an institutional-grade treasury and company, backed by top talent and strategic partners like Ethereum co-founder Joe Lubin. 

Ethereum treasuries are becoming a major theme in crypto as billions in ETH now sit on corporate balance sheets. But as Joseph Chalom warns, the hunger for higher yields can quickly turn into trouble when risks are ignored.

For now, SharpLink is showing what disciplined growth in this space can look like.

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