Ethereum inventor Vitalik Buterin shared his comments on ETH and other cryptocurrencies on his Bankless podcast. Ethereum creator Vitalik Buterin doesn’t think ETH will be priced in until Merge happens. Here are the details…
Vitalik Buterin conveys his expectations for Ethereum
In a recent interview with the Bankless podcast, Buterin said he did not expect Merge to be priced immediately, marking Ethereum’s transition to proof-of-stake. Buterin explained that he referred to the effects of pricing the event not just “in terms of the market,” but also psychologically and narratively. He used the following statements to critics of the network, who have long been skeptical about whether and when Ethereum will transition from Proof-of-Work (PoW):
You know, even today many people treat this environmental problem as if it were a fatal flaw. At this point, I think the only way to convince a lot of people that they’re going somewhere is to actually go there. When that happens, it will change many minds.
Meanwhile, ETH rose 10 percent in 24 hours to $ 1,618. Market participants attribute this positive price action largely to optimism about the upcoming Merge, tentatively scheduled for September. Due to this optimism, the number of active ETH addresses rose 48 percent on Wednesday, reaching an all-time high of 1.06 million.
Buterin warns against these cryptocurrencies
Also, Ethereum creator Vitalik Buterin warned his Twitter followers not to invest in cryptocurrency projects that offer huge returns. In a tweet Wednesday, Buterin explained what an “important lesson for the crypto space” is. The lesson, according to Buterin, is knowing that if a protocol offers a 20 percent annual rate (APR) for staking cryptocurrency, it will be a Ponzi.
“We cannot completely block bad projects, so we must guard against them with our might,” Buterin wrote on Twitter. While not all cryptocurrency investors agree, he argued that the return offered is largely dependent on the functioning of the project. Meanwhile, it’s worth noting that Terra’s Anchor Protocol is offering investors 20 percent APR, as we reported on Kriptokoin.com. Apart from Anchor, there is currently no other cryptocurrency protocol that offers a 20 percent APR.
While the ecosystem was thriving, more than 70 percent of TerraUSD holders had invested their assets in the DeFi platform. At one time, the Anchor platform had $17.15 billion of locked aggregate value (TVL). But that amount collapsed overnight, with the collapse of Terra’s algorithmic stablecoin, TerraUSD (UST). The collapse of the Terra ecosystem had gradual effects throughout the entire crypto industry. Bitcoin, Ethereum, and the broader crypto market suffered sharp drops after the event. Meanwhile, several crypto lending platforms and funds filed for bankruptcy.
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