On November 4, the Ethereum Foundation confirmed the launch of the Ethereum 2.0 deposit contract, or ETH2, and, for now, 47.7 thousand ETH have been sent to the contract. What does it mean?
ETH2, is it succeeding?
Ethereum 2.0 has had to overcome many obstacles and therefore the crypto community has feared multiple times that ETH2 would suffer one more delay.
Consequently, the launch of the ETH2 deposit contract surprised the community. For those who don’t know what this launch entails, it basically allows investors to deposit ETH into this contract.
Those who deposit their ETH into this contract will be able to claim ETH2 on the second network once it goes live.
Why would investors do that? Basically because there is the expectation of receiving a return during the time that these ETH are deposited; however, at the moment it is not known which performance.
To participate, investors must deposit at least 32 ETH and a total of at least 16,384 deposits or 524,288 ETH are required, almost USD 200 million until the deployment of the Beacon Chain.
Have investors contributed ETH?
Yesterday Dune Analytics offered very interesting information on Twitter regarding the progress of the ETH2 contract.
According to Dune Analytics, for now, 47.7 thousand ETH have been deposited into the ETH2 contract; being only 9% of the 524,288 ETH needed.
This amount of ETH has been deposited by 232 people; Vitalik Buterin has been one of the biggest contributors so far with a deposit of 3,200 ETH.
Obviously ETH2 is still quite far from its goal and that raises concern. The question is: What is holding investors back?
In fact, it is speculated that the Buterin transaction was part of a strategy to build confidence in investors and incentivize them to deposit their ETH in the contract.
Anyone would expect that, after the support of Vitalik Buterin, all investors would rush to deposit their ETH in the ETH2 contract. However, they could be held back by not knowing what the return will be and, even more worrying, I don’t know if the funds will be safe in the contract.
Bear in mind that, as part of the Beacon Chain rollout, investors will have to leave their funds frozen in the contract for two years. So no, it is not a decision lightly.
Will ETH2 make it to the goal? What should they do to be more attractive to investors?
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