Ethereum came under attack from Bitcoin maximalist and former MicroStrategy CEO Michael Thaler, who compared the network to LUNA, which tragically collapsed in May 2022. A prominent crypto company. Now Saylor points to proof-of-stake (PoS) networks like Ethereum as potentially crashing like the infamous Terra.
Will Ethereum Break Like LUNA?
In a Twitter post, the former MicroStrategy CEO emphasized that Ethereum is at risk of a LUNA-level event. The discussion was basically a comparison of Bitcoin to other cryptocurrencies such as Ethereum, which Thaler believes to be unstable.
The tweet included a link to a YouTube video by Trader University that went into more detail about why Ethereum’s blockchain and PoS network can go wrong. This highlights the fact that the Ethereum network relies on running staked ETH. However, Matthew R. Kratter stresses that more users tend to destake their coins if codes for withdrawal become available and cryptocurrency prices drop further.
At the end of the video, Kratter asks regulators to look into PoS networks like Cardano and Ethereum to determine if they have a “catastrophic implosion risk.” This is an effort to prevent another event like the LUNA collapse.
Thaler later compared the network to Bitcoin in a tweet, stating, “Bitcoin is based on advances in proof-of-work and ASIC technology and is designed to be stable, robust, and more secure and efficient over time.” It is designed to In contrast, “Proof of Stake protocols are inherently unstable, inefficient, opaque, and dangerous because of their fragile design,” he added.
ETH takes a dive as speculations gain momentum | Source: ETHUSD on TradingView.com
earn the wrath of supporters
Michael Thaler has always been a bitcoin maximalist, preferring the pioneer cryptocurrency over all other cryptocurrencies in the space despite its performance. This isn’t the first time Thaler has denied Ethereum, but his latest attempt has drawn the ire of his ETH supporters.
One user points to MicroStrategy’s Bitcoin investments under his leadership. At current prices, the company has experienced unrealized losses on its BTC holdings, and a similar investment in ETH would have paid off for the company and provided passive income if the coin was staked.
lol Sailor… what a big mistake you made… pic.twitter.com/KvGg65nRfw
— $ETH 🚀🦇🔊 (@Dark86268590) December 14, 2022
Nonetheless, Thaler is still a staunch supporter of Bitcoin, and his Twitter page proves this. One of his recent tweets includes a picture of a Bitcoin light bulb with the caption, “Bitcoin is Eternal Light.”
#bitcoin Eternal light. pic.twitter.com/4Ht8EgpXkC
— Michael Saylor ⚡️ (@saylor) December 14, 2022
Featured image from Coingape, chart from TradingView.com
