Ethereum cryptocurrency has been called an anti-utopia
Su Zhu, the CEO of Singapore venture capital firm Three Arrows Capital (3AC), has attacked ETH for its hefty fees, which restrict newbies from adopting the blockchain.
“Yes, despite my previous support for Ethereum, I have given up on it. The concept of sitting on the sidelines, watching the combustion and putting up purity tests while precisely no newcomers can afford the blockchain is repulsive “he commented
Ethereum, according to Zhu, suffers from the “founders’ paradox,” in which the founders are “now too wealthy to recall what they originally planned to do.” In less than an hour, his remark had almost 4,000 likes.
It takes a lot of money to test the features of Ethereum
“Users are enraged because they were promised a future and then informed they had to pay $100 to $1,000 every transaction to enjoy it,” Zhu explained. “They then tell tales about how they should have been smarter and bought ETH for $10.”
3AC’s CEO also shared a tweet from Messari analyst firm founder Ryan Selkis, who stated that only accredited investors can properly benefit from Ethereum.
“It makes no difference whether Ethereum is a security or not because the only people who can afford to use it are already accredited. I really like ETH, however you have to invest $10,000 to try out some new things and understand how to use them. I suppose it’s better than college”, Selkis wrote.
Later, Zhu backed down, claiming that “rejection is the incorrect term.” He admitted to getting a little riled up, but said that there are “amazing teams” working on second-tier scaling solutions.
He’d like to see a strategy for the network’s initial version, as well as changes that are “centered on users, not owner welfare,” he said.
“A domain name costs $2,000 today [we’re referring to the Ethereum Name Service system]. Contract deployment costs $1,000. It costs $50 to send a token. It’s a dystopia, and it should be treated as such, rather than a commission-burning party. It’s a rentier attitude, which I believe is risky “Added he.
The hefty transaction costs associated with Ethereum have long been a source of criticism. The average was over $50 in October 2021. As of this writing, the average commission on the network, according to Glassnode, is $39.
Binance, the cryptocurrency exchange, announced the merger of Arbitrum One in November. Customers were able to deposit ETH using this second-tier solution’s network.