Golem Loses Investors' Trust – GLM Flops

Golem raised 820,000 Ethereum (ETH) from investors in the ICO boom in 2016. However, its own token GLM flopped. Now Golem is selling massive amounts of ETH

Crypto investors from the early days will remember Golem (GLM), and the younger generation is now becoming aware of the project. On X, analysts such as Lookochain and Wu Blockain are drawing attention to what Golem is doing with its huge holdings in Ethereum (ETH). These come from Golem’s financing phase via ICO in 2016, when 820,000 ETH were raised. Now Golem seems to be largely dissolving its reserves, as thousands of ETH are being sent from wallets to crypto exchanges every day and are apparently being sold there.

This sparks discussions. On the one hand, GLM’s Ethereum sales are presumably causing price pressure for ETH. On the other hand, there is speculation as to whether the team wants to disband, which would probably also mean a tough end for GLM. Golem itself has responded to X and refers to a blog post from mid-June. According to this, the intention is to invest a “significant proportion of the ETH reserves” in self-organized Ethereum staking. However, the actual project with GLM continues to have absolute priority.

Golem team gets entangled in contradictions regarding Ethereum reserves

Most commentators on social networks, however, do not trust Golem’s explanation. Because if the team sends ETH to crypto exchanges, it can’t really have anything to do with solo staking. One Ethereum wallet documented by GLM has already been emptied and a second one here only has 80,000 ETH left, as of Thursday morning. Information promised in the Golem blog post on the continuation of the ETH staking initiative has so far not been forthcoming.

Investors’ discontent and mistrust also stem from the fact that Golem never actually achieved its original goals in a convincing way. Initially, GLM was intended to be a means of payment in a network in which computer capacity is sold. Recently, Golem has decided to incorporate artificial intelligence into this concept. None of this has done GLM’s price curve any good; Golem is currently trading at around 0.30 US dollars, at levels similar to those in 2017. For comparison:

The Ethereum collected in 2016 were traded at a price of around 10 US dollars each at the time and are now worth more than 3,000 US dollars each.

Conclusion: Golem loses trust – GLM on the sidelines

Golem’s ICO was one of the largest of its kind and the project was initially accompanied by euphoria. But like many cryptocurrencies from that time, the concept and contributors gradually turned out to be less serious and unsuccessful. Golem has now slipped to a place below 150 in the list of the most capitalized cryptocurrencies and is practically no longer of interest.

The blockchain data on Ethereum sales do not match the Golem team’s explanation of ETH staking – which is why alarm bells are ringing. There are many indications that GLM will become an orphaned cryptocurrency in the future. Because if the Golem team wanted to support GLM and its thesis on the ETH actions, it could have already done so in a transparent manner – after all, several hundred million US dollars are at stake.