Ethereum Co-founder Hints At Plans To Tokenize SharpLink Gaming’s SBET Stock

While SharpLink Gaming is going through the throes of a 71% correction over the last day, the odds for a tokenized version of SBET have spiked. Ethereum co-founder Joseph Lubin has hinted at the possibility of creating an on-chain version of the beleaguered stock amid rising scam activities.

Ethereum Co-founder Signals SBET Stock Tokenization

Joseph Lubin, co-founder of Ethereum, has flashed a signal for the potential tokenization of SharpLink Gaming’s SBET Stock. Joseph Lubin, doubling as Chairman of SharpLink Gaming’s Board, revealed the plans via an X post in response to a community member.

The X user urged Lubin to tokenize SBET as a way to sidestep the challenge of bad actors misusing the ticker. Lubin’s response signaled an agreement to the proposal and offered to go above and beyond with the plans for tokenization.

Tokenizing the SharpLink Gaming stock will offer the company a range of benefits, including broader capital access and 24/7 trading. On the flip side, investors will trade SBET with lower fees, instant settlement, and the potential for DeFi integration.

Lubin’s role as an Ethereum co-founder and ConsenSys founder provides him with the tools to execute SBET’s tokenization. SharpLink Gaming is now the largest publicly traded Ethereum holder after its hefty 176,271 ETH purchase.

“Tokenize SBET, please, so we can buy SBET on-chain,” said the pseudonymous Zima. “Plus, it will prevent malicious actors from taking advantage of the SBET ticker.”

Since assuming the moniker as the MicroStrategy of Ethereum, a wave of fake SBET tokens has flooded the ecosystem. Tokenizing SBET will prevent fraudulent individuals from taking advantage of the ticker with their bogus projects. However, the Ethereum co-founder is pushing for a cautious approach toward tokenizing the SBET stock.

Stock Tumbles By Over 70% Despite Heavy Ethereum Accumulation

SBET’s price fell by 79.69% on the last trading day of the week to settle at $9.21. The steep correction is linked to a recent filing by the sports betting platform for the “potential resale of shares” after its heavy ETH purchases.

According to Lubin, the markets and investors misinterpreted the S-3 filing with the SEC as an actual sale. The Ethereum co-founder explained that the filing is “standard post-PIPE procedure” ahead of an upcoming Ethereum purchase announcement.

SharpLink Gaming recently raised $425 million in a private placement deal to create an Ethereum Reserve Treasury. The Joseph Lubin-led company has announced a $1 billion shelf offering to purchase Ethereum, with each previous cash raise triggering a price rally.

Despite the falling SBET stock price, Ethereum is eyeing a 35% rally on the heels of the formation of an ETH/BTC bullish pennant.