TORONTO, March 14, 2019 (GLOBE NEWSWIRE) -- Ether Capital Corporation (“Ether Capital”, “ETHC” or the “Company”) (NEO:ETHC) is pleased to announce that it has made a US$1.0 million investment in MKR, the governance token of MakerDAO (“Maker”). Maker is a decentralized credit platform built on Ethereum in which collateral is leveraged to produce a stablecoin. With over US$350 million of collateral and stablecoin value currently deployed in Maker, it is one of the most prominent projects in the Web 3 ecosystem.
Ether Capital purchased 2,300 MKR tokens from the Maker Ecosystem Growth Foundation (the “Maker Foundation”) in exchange for 7,374 Ether (“ETH”), which is accretive to the Company. Following the Maker transaction, Ether Capital’s ETH balance is now at 35,210.
The Maker Foundation sale was exclusive and conducted privately, with buyers reflecting the Maker Foundation’s intention to distribute the MKR tokens to long-term, strategic holders that will participate positively and constructively in Maker governance and development.
Maker uses a dual token model: (1) the Dai token: a stablecoin whose value is pegged at US$1.00; and (2) the MKR token: a token that provides voting and governance rights over the Maker platform and whose value derives from fees paid to use the credit system. Maker plans to deploy a new version of the platform in 2019 that would allow multiple collateral types beyond ETH to be used in its credit system, which we expect would bring additional scalability to Dai issuance and ultimately lead to multi-billions of dollars worth of collateral entering the Maker system.
Ether Capital believes that a decentralized stablecoin like Dai is critical for adoption and growth of the Ethereum and Web 3 ecosystem. Dai allows users to trade and interact with applications on Ethereum without the volatility associated other cryptocurrencies or the redemption risk associated with centralized, fiat-collateralized stablecoins.
Brian Mosoff, CEO of Ether Capital stated: “As one of the most respected projects in Ethereum, Maker represents a key piece of infrastructure that we expect will drive mainstream growth and adoption. Maker and Dai fit perfectly within our Web 3 thesis and have achieved substantial developer mindshare within the ecosystem. The success of Maker and Dai is not only a testament to the innovation happening within the Ethereum community but also to the flexibility and utility of the Ethereum platform itself.”
Added Stefan Coolican, President and Chief Financial Officer of Ether Capital: “We are excited by the potential of Dai use cases and adoption, and the accompanying financial upside the MKR token provides. Also, it is important to note that our holding of MKR is strategically complementary to our Wyre investment announced last year, as Wyre is focused significantly on Dai as an important on-ramp into the ecosystem.”
Rune Christensen, Founder of Maker, commented: “We are delighted that Ether Capital has participated in the MKR private sale. Ether Capital has shown a long-term commitment to the Ethereum ecosystem and we look forward to their participation in Maker governance.”
At the request of the Maker Foundation and in connection with its allocation of MKR tokens to Ether Capital, Ether Capital has agreed to participate and contribute to weekly Maker governance calls for a minimum period of one year.
Ether Capital views and intends to hold the MKR tokens as a long-term strategic asset. The Company holds the MKR tokens in its multisignature wallet in accordance with its security policies.
About Ether Capital Corporation
Ether Capital is a Toronto-based technology company whose objective is to become the central business and investment hub for the Ethereum and Web 3 ecosystem. Ether Capital has invested in Ethereum’s native utility token “Ether” as a strategic asset, and selectively invests in projects, protocols and businesses that leverage the Ethereum ecosystem and Web 3 technologies. Founded by a highly experienced Board of Directors and management team, Ether Capital has the resources, experience and relationships to support businesses and invest in industry-shifting disruptive technologies. For more information, visit https://ethcap.co/ .
For further information concerning this press release, please contact:
Chief Executive Officer
https://ethcap.co/ Stefan Coolican
President and Chief Financial Officer
https://ethcap.co/ This press release is not an offer of securities for sale in the United States, and the securities described in this press release may not be offered or sold in the United States absent registration or an exemption from registration. The securities have not been and will not be registered under the United States Securities Act of 1933. The NEO Exchange does not accept responsibility for the adequacy or accuracy of this release.
This press relea...