Vitalik Buterin supports ETH Treasury, but warns of risks


Ethereum co-founder Vitalik Buterin provided support behind the so-called Ether Treasury, but warned that the trend could spiral “overdriving games” if handled irresponsibly.

In an interview with a shoreless podcast issued On Thursday, Butling said there are more and more public companies buying and holding Ether (eth) is valuable because they expose the token to a wider range of investors.

“There is definitely valuable service there,” Butling said. He added that buying ETH’s Treasury companies instead of holding tokens directly gives people “more choices”, especially those with “different financial environments”.

The so-called cryptocurrency companies have become the hottest trend on Wall Street, getting billions of dollars in purchases and having a lot of cryptocurrencies to expose traders to tokens, the most popular game is Bitcoin (Bitcoin).BTC) and ether.

Leverage shall not lead to the “fall” of ETH

Butling cautiously eased his support, stressing that the future of ETH must not be at the expense of excessive leverage.

“If you wake me up three years from now and tell my country that the library will lead to the downfall of ETH, then, of course, I guess why it’s basically turned it into an overdose game in some way.”

He outlined the worst chain reaction, in which the price drop in ETH becomes a forced liquidation that forces the price of tokens to fall, which also leads to a loss of credibility.

Butterin is confident that ETH investors have enough discipline to avoid this collapse.

“These are not the Quain followers we are talking about,” he said, referring to the co-founder of the collapsed Terra blockchain in 2022.

ETH Treasury now holds nearly $12 billion

Markets of listed companies that hold Ether bubble To $11.77 billion, by Bitmine Immersion Technologies and Sharplink Games.

Bitmine holds 833,100 ETH, worth $3.2 billion, the fourth largest stake in a listed company that holds any cryptocurrency.

Related: Ethereum beats Solana in capital inflows: See $4K goal

Sharplink and Ether Machine hold $2 billion and $1.34 billion worth of ETH, respectively, while Ether Foundation and Pulse Castle ranked the top five.

12 largest ETH Treasury holders. source: Strategic Spirit XYZ

Eth makes a comeback

ETH has been a different year so far, falling from $3,685 in January to a low of $1,470 on April 9, and then lumping it to over 163% Current price is $3,870.

The trend of ETH finance companies has been a well-known catalyst behind the token comeback revival. Its price rally helps ETH Close the gap In Bitcoin and Solana (sol), which leads to the current bull cycle.

Magazine: How Ethereum Finance Company sparked “Defi Summer 2.0”