Why This Crypto Billionaire Abandoned Ethereum

Ethereum which is the second-largest cryptocurrency project in the globe has enjoyed the support of major and big-time investors in recent years. Its growth over the last year has helped to further reinforce why investors tend to choose the altcoin over Bitcoin. One of those who have supported Ethereum openly and majorly in the past has been Su Zhu, CEO, and CIO of Three Arrows Capital, a Singapore-based fund management firm.

Zhu who has supported Ethereum for a while recently announced that he was leaving the digital asset behind. This came as a shock but Zhu’s reasons for making this move have proven to have some merit to it and has got some in the space wondering about the future of the blockchain.

Related Reading | Famed Psychologist Jordan Peterson Says “Inflation Be Damned” As He Buys More Bitcoin

Zhu Exits Ethereum

In a series of tweets posted to Twitter, the CEO outlined his reasons for exiting the second-largest cryptocurrency in the market. According to Zhu, the barriers to entry for Ethereum had become too high for it to be a feasible investment for newcomers. He explained that just as he has abandoned the project, so has the project abandoned its users.

Yes I have abandoned Ethereum despite supporting it in the past.

Yes Ethereum has abandoned its users despite supporting them in the past.

The idea of sitting around jerking off watching the burn and concocting purity tests, while zero newcomers can afford the chain, is gross.

— Zhu Su 🔺 (@zhusu) November 21, 2021

Related Reading | Kraken Is Delisting Top Privacy Coin Monero (XMR) For UK Users

Zhu explained that Ethereum had gotten too big to care for what the blockchain had set out to do in the beginning, implying that the project had lost its way. He had then suggested that it needed a reminder in the way of a bear market to set it back on track again. On the flip side of that, the CEO had also suggested that maybe migrating to a new blockchain may be the next best thing.

Going further, Zhu had addressed the negative feedback that his initial tweets had gotten from the Ethereum community. He pointed to the exorbitantly high fees that are now required to transact on the Ethereum network, stating that “users are livid that they’re promised a vision of the future, then told that they have to pay $100-1k per tx to enjoy it, and then get told some tales about how they should’ve been smart enough to buy ETH at $10.”

Looking Forward To A New Blockchain

Zhu’s tweets come after his fund management firm, Three Arrows Capital, had been disclosed to be invested in Ethereum’s rival blockchain, Avalanche. It was revealed that the firm had been a contributor of Blizzard, which finances developers that are building on the Avalanche blockchain. Blizzard hosts a $200 million fund that is specifically targeted for this purpose.

ETH trending at $4,151 | Source: ETHUSD on TradingView.com

In addition, a wallet that was said to be attached to Three Arrows Capital had moved a significant amount of Ethereum to the FTX crypto exchange. It is speculated that the approximately $77 million worth of ETH had been moved to the platform to be sold.

Featured image from Analytics Insight, chart from TradingView.com

Share:

Share on facebook
Facebook
Share on twitter
Twitter
Share on pinterest
Pinterest
Share on linkedin
LinkedIn

Follow Us

Most Popular

Get The Latest Updates

Subscribe To Our Weekly Newsletter

No spam, notifications only about new products, updates.
On Key

Related Posts

New Strategic Partner for CheersLand: Medabots

Cheerlands has made an announcement about its partnership with Medabots, which is one of the best GameFi projects across the world. So it is the new strategic partner, and both of them will be working together in terms of cross-marketing, staking, working with tournament organizations, and competitions to grow each other’s projects in various ways.

FTX Ventures to Support Development of Product Categories

The segment of technology services is going through a phase of comprehensive transformation. Many competitive players are entering into the segment, and as a result, all stakeholders, including customers and investors, are getting access to new-age services and technology products. The organization is now gearing to make the future of the ongoing web3 Revolution even

Sphynx Labs Is Looking Forward to Integrating with Chainlink

Sphynx Labs, called the decentralized exchange, is officially integrating three different decentralized services, Chainlink, the leading network of Oracle, in a decentralized manner. Sphynx is working towards the enhancement of functions in its platform by- Using Chainlink VRF to verify that its drawing games are provably fair. Working with Chainlink Keepers to provide additional stop-loss

SundaeSwap and the ISO to Go LIVE on Thursday

The long-awaited moment has arrived! The information about the launch of  SundaeSwap DEX is presented in an easy-to-understand format below. Important Dates and Points to Remember: SundaeSwap will go live as a completely operational beta decentralized exchange on 20 January Thursday. The 1st round of ISO prizes will be determined on 25 January Tuesday. To