Convert ICF $ETH to $ATOM

Conversation
1

The latest ICF treasury report lists $44 million in Ethereum and $72 million in Bitcoin, among other assets:

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I can understand the Bitcoin allocation to continue to fund efforts in the event of an isolated Cosmos turndown, but the Ethereum reserve makes no sense. $ETH will not hedge against $BTC downturns. Additionally, the ICF still has $72 million in fiat available, enabling sustained operations for a significant period of time!

The $ETH reserve should be converted to $ATOM. $ATOM can use the price benefit, staking that $ATOM will improve network security, and it is a vote of confidence that the ICF has $ATOM’s best interests at heart.

If partner chains like Elys are including $ATOM in their treasuries, there is no reason to not support the price action ourselves, as it supports all that support the Hub. In summary:

  1. ICF has $72 million in fiat to sustain ops for significant period of time.
  2. ICF has $72 million in $BTC as a hedge against $ATOM-centric volatility
  3. $ETH is not a hedge against $BTC volatility
  4. The ICF therefore has no economic requirement to keep it’s massive $ETH reserve
  5. From points 1-4, the $ETH funds should be converted to $ATOM to support network security and price action.
2

Arbitrage should be done with the foundation’s BTC. Eth has not yet delivered its performance while BTC is at ATH and Atom at the bottom.

3

Definitely hear what you’re saying. I think the ICF would want to avoid active trading, but could incorporate your idea, if it was more popular than converting all ETH to ATOM, by the ICF establishing a predetermined % crypto allocation for it’s portfolio.

For example, $ATOM has to be 50% of the portfolio, and BTC 25%, ETH 15%, 10% for other IBC tokens.