SharpLink CEO Chalom Issues Stark Warning: Companies Risking Everything for ETH Yield Are Playing With Fire

Another day, another yield chase—but this time, corporate treasuries are diving headfirst into Ethereum's risk pool.

The High-Stakes Gamble

SharpLink's chief executive Chalom slams the reckless dash for ETH returns, calling out companies treating yield farming like a corporate strategy session. No actual numbers? Typical finance—all hype, no substance.

DeFi's Siren Song

Enterprises bypass due diligence, cuts corners on risk management, and jumps into protocols promising double-digit APY. Because what could go wrong with unaudited smart contracts handling company funds?

Reality Check

Chalom's warning cuts through the crypto hype: chasing yield without understanding the underlying mechanics is just gambling with shareholder money—but hey, at least it's not another boring earnings call.

Corporate crypto strategies now mirror hedge fund desperation—when the yield dries up, we'll see who's been swimming naked.

The ETH treasury space is expanding rapidly as more companies add Ether to their balance sheets. For some, this is a bet on the future of blockchain. But for others, it is a chance to chase quick profits.

Sharplink Gaming co-CEO Joseph Chalom has issued a warning that companies treating Ether as a quick-yield machine are taking on big risks.

Let’s find out why he thinks this strategy could backfire.

Chalom Warns Against Risky ETH Yield Chasing

In a recent interview with Bankless, Chalom touched upon the risks in the ETH treasury space. 

“I think the biggest risk is that people who are far behind are going to take risks that I don’t think are prudent,” he said. 

Just as in traditional finance, some ethereum treasury players are pushing for higher returns while convincing themselves those extra gains are safe. Chalom disagrees. 

He pointed out that high returns are never free of risk and highlighted the dangers companies often overlook like credit risk, counterparty risk, duration risk, smart contract vulnerabilities.

At SharpLink, we believe $ETH is the superior treasury asset — the world’s first true trust commodity.

It’s productive, yield-bearing, programmable, and rapidly emerging as the Core institutional digital asset.

I sat down with @RyanSAdams on @BanklessHQ to share why we see… https://t.co/8Dyn1EVDK6

“The beautiful thing about ETH treasury companies is they’re almost infinitely scalable,” he said adding that ETH treasury companies can grow efficiently without large teams, but overbuilding during high prices could create problems if the market dips.

SharpLink’s ETH Treasury Crosses $3.6B

Despite these risks, SharpLink itself has committed heavily to Ethereum but with a more measured strategy.

The company now holds 837,230 ETH, worth over $3.6 billion. Since launching its treasury strategy, it has earned 2,318 ETH in staking rewards.

Chalom welcomed the growing interest in the Ethereum treasury space, calling it “coopetition”, healthy competition that validates Ethereum’s long-term potential.

SharpLink aims to stand out by building an institutional-grade treasury and company, backed by top talent and strategic partners like Ethereum co-founder Joe Lubin. 

Ethereum treasuries are becoming a major theme in crypto as billions in ETH now sit on corporate balance sheets. But as Joseph Chalom warns, the hunger for higher yields can quickly turn into trouble when risks are ignored.