Key Points
- •Du Jun advocates caution against shorting Ethereum due to strong market dynamics.
- •Institutional flows strengthen Ethereum's resilience, warns founder of Vernal.
- •Short-selling BMNR considered viable due to dated ETH strategies.
Du Jun, founder of Vernal, declared shorting premium treasury stocks like BMNR acceptable but shorting Ethereum very unwise, impacting crypto market views, primarily on social media, on August 2023.
His comments emphasize cautious trading strategies in cryptocurrency markets amid significant Ethereum institutional inflows, drawing attention to potential risks with premium treasury offerings and ongoing market volatility.
Du Jun, founder of Vernal, publicly cautioned against shorting Ethereum, citing robust institutional flows and its current market structure. He finds short‑selling premium treasury companies like BMNR more acceptable under present conditions.
Thomas Lee leads BMNR, a company currently transitioning away from Ethereum accumulation. Influential firms, including Kerrisdale Capital, argue BMNR's model is outdated, increasing short‑selling interest.
“Shorting premium treasury companies like BMNR is a viable strategy, but shorting ETH, given its current market structure and institutional flows, is very foolish.” – Du Jun, Founder, Vernal
Du Jun emphasizes institutional activity supports Ethereum's stability.
Ethereum witnessing a $112M short squeeze on Binance resulted in a price hike towards $2,800. Du Jun asserts that institutional inflows into Ethereum continue showing market confidence in the asset's long‑term performance.
Financial implications are considerable, with BMNR recently executing a $250M private placement for Ethereum treasury additions. Ethereum staking flows show growth despite declining DEX activity and de‑risking among institutional capital.
Data indicating Ethereum's market resilience can influence other cryptocurrencies and industry sectors. Du Jun's statements might affect investor sentiment and institutional decision‑making.
The upcoming "Pectra" upgrade, enhancing Layer‑2 efficiency, contributes to Ethereum's favorable outlook. Vitalik Buterin, Co‑founder, Ethereum stated, "The upcoming 'Pectra' upgrade is expected to double Layer‑2 blob space and raise validator staking limits." Positive developer sentiment and anticipated advances in Ethereum's ecosystem highlight broader technological and institutional support.