The post The Top Asset On Grayscale’s Smart Contract Fund Has Drawbacks appeared first on Coinpedia Fintech News
A user recently pointed out some drawbacks of Cardano (ADA), which continues to be the top asset on Grayscale’s smart contract platform fund.
As pointed out by a Twitter user named ThisCorrosion, the fact that Grayscale keeps all the ADA it buys in Coinbase cold storage indicates that Coinbase has control over the staking keys and is probably exerting too much influence over ADA governance. These institutions are also not receiving the profits on their staked assets that they would have if they had staked the funds with stake pool operators (SPOs).
ThisCorrosion further commented that institutions need to realize the unique benefits digital assets have over commodities, which enable them to earn only when the value rises.
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