Why This Crypto Billionaire Abandoned Ethereum
November 23 2021 - 11:00AM
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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.
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“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)
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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
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