A few days ago, I came across a statement claiming that a certain tech giant is about to hold Ethereum, with the reason that crypto assets can be added to the balance sheet and used to hedge against USD exchange rate risk. At first glance, it sounds fresh, but upon closer thought, it’s a bit far-fetched.

From a corporate finance perspective, using a highly volatile and liquidity-uncertain secondary asset to hedge a single exchange rate risk is fundamentally flawed. Moreover, this company itself is a tech enterprise with the strongest financial attributes, and managing USD reserves wouldn’t be so amateurish. Plus, they have a complete ecosystem and exceptional technological R&D capabilities, so there’s no need to chase others’ tracks — this is just hype.

However, recently, Ethereum’s performance has indeed been interesting. In the past few days, it’s been more resilient compared to Bitcoin, but it’s not because of strength; mainly because its previous gains lagged behind, and during declines, the selling pressure wasn’t as fierce. Comparing the data makes it clear: the Ethereum price when Bitcoin dropped to 945, and the current Ethereum price when Bitcoin is at 979, are actually still somewhat low. If Bitcoin continues to decline proportionally, Ethereum still has room to catch up.

Ultimately, a major event of this magnitude wouldn’t be known to retail investors on Twitter first, let alone before the media and investment banks. If that were the case, it would truly become a different kind of “fruit.”