The statements made by the Ethereum founder on Twitter today were misunderstood. Vitalik Buterin caused the rally of an altcoin project with the letter X he used to give an example.
Vitalik Buterin triggered the rally with his example
On November 29, Buterin discussed protocols selling monetization rights on Twitter. While saying that this is wrong, a token with the abbreviation “X”, which he wanted to give an example, gained around 600%. The buying spree, which lasted about two hours, was temporary and the price bounced back at the same pace. Transaction records show that the purchases started after Buterin’s comments.
What did the Ethereum founder want to say?
Vitalik Buterin opposed projects that distribute ownership over the token. Here are the statements that activated the X token today:
The concept of “management rights” as a narrative for why a token should be valuable is pathological. You literally say “X” because later someone can buy from me and a bunch of other people to distort the protocol in their own private interests.
The notion of "governance rights" as a narrative for why a token should be valuable is pathological. You're literally saying "I'm buying $X because later on someone might buy it from me and a bunch of other people to twist the protocol toward their special interests"
— vitalik.eth (@VitalikButerin) November 29, 2022
In the continuation of the tweet, Buterin stated that this system is advantageous for these coins, not for individuals:
As an ordinary individual, “pay 500 dollars to get a 0.0001% chance to influence the outcome of some votes” is not a good trade. The only people for whom this is a good trade are multimillionaires and hedge funds (including attackers).
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