October 3, 2022

Why This Crypto Billionaire Abandoned Ethereum

3 min read

Ethereum which is the second-largest cryptocurrency project in the globe has actually taken pleasure in the support of major and big-time investors recently. Its development over the last year has assisted to even more reinforce why financiers tend to pick the altcoin over Bitcoin. One of those who have actually supported Ethereum freely and majorly in the past has actually been Su Zhu, CEO, and CIO of Three Arrows Capital, a Singapore-based fund management firm.

Zhu who has actually supported Ethereum for a while recently revealed that he was leaving the digital property behind. This came as a shock but Zhu’s reasons for making this relocation have proven to have some benefit to it and has got some in the space questioning the future of the blockchain.

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Zhu Exits Ethereum

In a series of tweets posted to Twitter, the CEO outlined his factors for exiting the second-largest cryptocurrency in the market. According to Zhu, the barriers to entry for Ethereum had become expensive for it to be a practical financial investment for newbies. He explained that just as he has actually abandoned the task, so has the project deserted its users.

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

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

The idea of relaxing jerking off seeing the burn and preparing purity tests, while absolutely no newbies can manage the chain, is gross.

—– Zhu Su 🔺 ( @zhusu) November 21, 2021 Associated Reading|Kraken Is Delisting Top Privacy Coin Monero (XMR) For UK Users

Zhu discussed that Ethereum had gotten too huge to look after what the blockchain had set out to do in the start, suggesting that the job had actually lost its way. He had actually then suggested that it required a suggestion in the way of a bear market to set it back on track once again. On the flip side of that, the CEO had also suggested that possibly moving to a brand-new blockchain may be the next best thing.

Going further, Zhu had actually dealt with the unfavorable feedback that his preliminary tweets had actually obtained from the Ethereum neighborhood. He pointed to the exorbitantly high costs that are now required to transact on the Ethereum network, mentioning that “users are livid that they’re assured a vision of the future, then informed that they have to pay $100-1k per tx to enjoy it, and then get informed some tales about how they need to’ve been wise enough to purchase ETH at $10.”

Looking Forward To A New Blockchain

Zhu’s tweets followed his fund management firm, Three Arrows Capital, had actually been divulged to be purchased Ethereum’s rival blockchain, Avalanche. It was revealed that the firm had been a factor of Blizzard, which funds designers that are developing on the Avalanche blockchain. Blizzard hosts a $200 million fund that is particularly targeted for this purpose.

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

In addition, a wallet that was stated to be connected to Three Arrows Capital had actually moved a significant amount of Ethereum to the FTX crypto exchange. It is hypothesized that the roughly $77 million worth of ETH had been moved to the platform to be offered.

Featured image from Analytics Insight, chart from TradingView.com