Ethereum-based project Ether Strategy, aiming to clone Michael Saylor’s $86 billion Bitcoin bet, has encountered a significant setback due to a “misconfigured” user interface (UI).
This mishap resulted in 165 ether (ETH ($3,174.41))—worth around $545,787.48—being mistakenly sent to an unverified contract.
The funds were since recovered and transferred to the correct contract, as confirmed by the project’s team.
The incident occurred just an hour after Ether Strategy announced the opening of its deposit phase.
In a quick response, the platform reassured users via X (formerly Twitter). They clarified that the misplaced funds were relocated to the right deposit contract.
Source: XA transaction link was shared by one of the project’s developers, Joseph Delong, a former CTO of SushiSwap, confirming the recovery.
The mishap occurred amid Ether Strategy’s mission to replicate MicroStrategy’s leveraged Bitcoin play on the Ethereum blockchain.
Users deposit Ether (ETH) into the project, and in return, they receive ETHSR tokens.
The underlying pool of ETH will eventually be controlled by ETHSR token holders through a decentralized autonomous organization (DAO ($1.96)) model.
The project had announced a cap of 10,000 ETH for the deposit phase. However, as per latest data, the site shows that just 270 ETH were deposited.
In contrast, Delong had earlier claimed that the project had received precommitments totaling over 40,000 ETH before launch.
Some users speculated that the error stemmed from using a testnet address prior to the project’s mainnet deployment.
Others suggested potential fixes to address the issue, but it remains unclear whether such solutions have been implemented.
Delong responded to critics who questioned the rushed nature of the launch. He dismissed concerns with a blunt retort, saying, “Has nothing to do with audits…”
This response has further fueled speculation about the project’s readiness and its ability to maintain user trust moving forward.
Ether Strategy’s Ambitious Ethereum Plan
Ether Strategy’s aim to mimic MicroStrategy’s Bitcoin strategy directly on the Ethereum blockchain amid rising competition in the crypto space.
Recently, other projects such as MegaStrategy and ETH Strategy have also launched projects to replicate Saylor’s Bitcoin-centric model on Ethereum.
Despite the controversy surrounding the recent UI mishap, these projects reflect growing enthusiasm among Ethereum holders who are seeking new ways to leverage their ETH holdings.
This competition comes at a time when Ethereum’s community is increasingly vocal about the asset’s underperformance compared to other blockchain networks.
Ethereum’s focus on non-financial applications, as seen in recent updates from its foundation, has caused frustration among some community members.
It has culminated in public tensions between Ethereum co-founder Vitalik Buterin and his critics.
Ethereum faces pressure to find innovative ways to capture more value from its ecosystem.
Projects like Ether Strategy could play a key role in pushing the platform forward, given they overcome their growing pains.
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