Sharpbet Takes a Risk on Stock Tokenization as ETH Value Dips Below $4,000
A company listed on Nasdaq has just taken steps to place its shares on ETH, coinciding with Ether dipping below $4,000 amid a new wave of liquidations.
SharpLink Gaming (Nasdaq: SBET) revealed on Thursday its intention to tokenize its SEC-registered common stock on the Ethereum distributed ledger, marking it as the first US public corporation to natively issue equity on ETH.
This initiative, in strategic alliance with Robert Leshner’s Superstate, occurs as Ethereum’s value retreated back under $4,000 on September 25.
The sports gaming and technology company based in Minneapolis seeks to explore compliant secondary trading of tokenized shares utilizing automated crypto market makers (AMMs).
As part of the agreement, Superstate will act as SharpLink’s digital transfer agent, and its “Opening Bell” network will facilitate the on-chain issuance.
“Tokenizing SharpLink’s equity directly on Ethereum is not just a technical achievement; it’s a proclamation about our vision of the future of global capital markets,” stated Joseph Chalom, co-CEO of SharpLink.
Robert Leshner, who is the founder and CEO of Superstate, termed the launch a “milestone” and expressed the company’s intention to collaborate in enabling compliant DeFi trading of tokenized public equities.
This initiative underscores how conventional firms are testing distributed ledger infrastructure while the crypto market faces challenges. Ethereum is experiencing renewed selling pressure falling below critical levels.
What’s Behind Ethereum’s Decline Below $4,000 with Significant Liquidations?
Ether fell below $4,000 on Thursday, as the derivatives trading market witnessed significant unwinding.
CoinGlass data indicates that over the last 24 hours, long traders incurred around $332M in liquidations, contributing to nearly $718M in losses this week.
Lookonchain data revealed that one significant digital wallet, “0xa523,” suffered a single $36.4M wrecked.
Ethereum has just plunged below $4,000!
The largest loser, 0xa523, has been WIPED OUT.
His complete 9,152 $ETH (valued at $36.4M) long position faced total liquidation.
His overall losses now surpass $45.3M, leaving him with under $500K remaining in his account.https://t.co/8C3XNE5tMS pic.twitter.com/JplqJl0cPy
— Lookonchain (@lookonchain) September 25, 2025
Current charts indicate that ETH might revisit the $3,600-$3,400 range if selling pressures persist.
Simultaneously, SharpLink continues with its unique pilot: tokenizing SEC-registered equity directly on ETH.
The initiative assesses whether regulated shares can be stored in self-custody wallets and later traded on automated market makers without breaching securities regulations.
The organization aims to “modernize capital flows” and link its operations closer to Ethereum’s financial systems.
SharpLink has also been curating an ETH-focused treasury since June, holding over 838,000 Ethereum and accumulating more than 3,800 Ethereum in staking rewards until late September.
A recent Bitget report indicated that the company secured 509 ETH in staking gains last week, without engaging in new acquisitions or buybacks, a sign of its focus on treasury management while developing on-chain market tools.
Besides ETH, new infrastructure advancements are ongoing throughout the sector.
An article from The Block highlighted Goat Network’s efforts to establish a BTC Layer 2 using zero-knowledge rollups, illustrating how scaling technologies are extending to enhance quicker settlements and wider functionality.
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Ethereum Price Forecast: Can Ethereum Rebound Above $4,000 After Significant Selling Pressures?
The notable decline of ETH has prompted two distinct yet uptrend perspectives from crypto market commentators on X.
Crypto analyst Merlijn The Investor noted that Ethereum has decreased roughly 16% from its recent peak, entering what he refers to as a familiar “buy zone.”
$ETH IS BLEEDING!
But take a closer look: this is the exact buy zone we broke from last time.
Weak hands panic.
Strong hands accumulate.We’ve witnessed this play before.
This is where substantial profits are secured. pic.twitter.com/lXst5sUAet— Merlijn The Investor (@MerlijnTrader) September 25, 2025
His analysis shows the crypto token approaching the 100-day moving average (100 MA), a point that has previously marked significant rebounds.
He posited that while short-term traders might be anxious, long-term holders could see this drop as an opportunity to accumulate. “Weak hands panic. Strong hands load,” he remarked, emphasizing that a previous bounce from this area led to a notable surge.
Despite recent fluctuations, ETH remains above its 50 MA and 100 MA, indicating that the overall optimistic is still in place.
In contrast, Mister Crypto pointed out a different signal: a bullish divergence between the price of ETH and the Relative Strength Index (RSI).
UPTREND DIVERGENCE ON $ETH! pic.twitter.com/6KlLVW1WhC
— Mister Crypto (@misterrcrypto) September 25, 2025
ETH recently fell below $4,000, recording lower lows, while the RSI rebounded from oversold levels around 27.37.
He suggested that such divergence frequently signifies the conclusion of a selloff and the initiation of a relief rally.
If momentum persists, ETH could make an effort to retest nearby resistance, although analysts warned that broader sentiment would determine if the rebound remains durable.
Collectively, the two viewpoints present the current decline as a potential inflection point: one suggesting careful accumulation while the other points to a technical setup for a rebound.
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The article Sharpbet Makes Stock Tokenization Gamble As ETH Price Loses $4,000 first appeared on 99Bitcoins.
