Joe Lubin’s Bold Crypto Gamble Sends Shockwaves Through Market as Sharplink Collapses Overnight

Ethereum co-founder Joe Lubin just doubled down on crypto—and the market isn''t sure whether to applaud or run for cover.

Sharplink''s midnight meltdown leaves traders scrambling

While Wall Street sleeps, crypto markets pull another all-nighter. Sharplink—once a rising star in DeFi infrastructure—imploded faster than a leveraged long position during a Fed meeting. Liquidity pools evaporated, API endpoints returned 404s, and the usual Twitter finger-pointing began before sunrise.

The irony? Lubin''s ConsenSys had quietly accumulated a strategic position in Sharplink weeks before the crash. Whether this was visionary conviction or disastrous timing depends on which crypto influencer you ask.

One hedge fund manager (who requested anonymity while liquidating his Sharplink positions) quipped: ''This is why we can''t have nice things—the adults left the room in 2021.''

TLDR

• Sharplink Gaming’s stock dropped 91% in just two weeks after reaching an all-time high of $124.
• The stock fell sharply during after-hours trading from $33 to under $11 by 8 PM.
• Trading volume surged to more than ten times the average, signalling a massive selloff.
• A resale registration for over 58 million shares raised fears of shareholder dilution.
• Sharplink had raised 450 million dollars to build an Ethereum-based treasury strategy.

Sharplink Gaming’s stock plunged 91% in just two weeks following its controversial ethereum treasury pivot. After closing at $33, the stock crashed below $11 in after-hours trading. This drop followed an all-time high of $124, recorded just two weeks earlier.

The selloff intensified late Wednesday after a sudden surge in trading activity overwhelmed the market. Volume jumped over ten times the daily average, triggering a sharp decline. The abrupt loss marked the largest single-day percentage drop in Sharplink’s history.

The market reaction came after the appearance of a Form S-3ASR linked to a major resale registration. The statement involved over 58 million SBET shares from a recent private placement deal. It followed the company’s earlier MOVE to raise capital for ETH purchases.

The filing is a standard SEC resale registration statement with all participants shares being registered as part of the registration. It does not reflect any actual sales or anyone''s sales being sold (which may or may not happen, I have no idea). But it''s a basic registration…

— Matt Corva (@MattCorva) June 12, 2025

SBET Shelves Confidence With Dilution Concerns

Sharplink had recently adopted an ETH treasury strategy, positioning itself apart from traditional Bitcoin-based treasury models. The company raised $450 million to fund ETH acquisitions through private placements. However, the resale registration triggered immediate concern over possible dilution.

SBET participants filed to resell nearly all their holdings, compounding fears of a broader selloff. The resale covered shares issued during the capital raise tied to the ETH strategy. As a result, confidence in the company’s long-term vision rapidly declined.

Joe Lubin, who chairs Sharplink and also leads ConsenSys, addressed the concerns through legal channels. A lawyer from his firm stated the filing was standard and involved no immediate sales. Yet the market continued to respond negatively, showing DEEP skepticism.

Sharplink’s ETH Strategy Faces Critical Pressure

Sharplink aimed to build a treasury exclusively backed by Ethereum, departing from models seen in other crypto-native firms. That strategy, however, now faces serious scrutiny after the fallout from the resale filing. Market participants saw the move as a red flag.

Despite legal reassurances, trading behaviour indicated a different outlook among stakeholders. The rapid price drop and high volume reflected a broad rejection of the narrative. The situation may shift, but current momentum shows a loss of market support.