The CEO of Three Arrows Capital, Su Zhu, talked down on Ethereum and its supporters in a hurtful tweet. He informs the public that he has given up on Ethereum despite his belief in the coin in the past. He believes that the cryptocurrency developers were the first to abandon their supporters.
Su Zhu believes that a lot of the recent activities by the blockchain fail to address the fact that few newcomers can afford to make transactions on the blockchain. The billionaire says he has left the blockchain because of its exclusive nature. This he sees as a deal-breaker for him.
Su Zhu believes the gas fees on the blockchain are too high. He thinks the situation is worsened because reputable people within the network seem unconcerned by it. He has expressed these misgivings in a series of tweets in the past day.
An Ethereum address yesterday identified as belonging to Su Zhu’s company has moved millions of dollars worth of Ethereum to a central exchange. There is no information as to the whereabouts of the coins now. The increased supply may hit Ethereum valuation negatively.
Ethereum Gas Fees
At the ending of October, the Ethereum token achieved a new all-time high. The latest price valuation also came with a spike in gas fees. High transaction fees have always been detractors for Bitcoin and Ethereum.
On the 30th of October this year, bitinfocharts.com reported that sending some Bitcoins will cost you an average of about 3 dollars. The website also informed that a similar transaction on the Ethereum blockchain would cost you an average of about 50 dollars. The platform showed that Ethereum fees were about a thousand times higher than Bitcoin.
Other platforms like 12fees.info were a little kinder in their valuation of the fees. It gets even higher, though, if you consider Ethereum based tokens. These trends cause serious concern for network supporters and have led Su to look towards other projects dubbed “Ethereum Killers.”
The founder of Quadency, Rosh Singh, has noted that there is beginning to be an increasing shift of interest by Investors towards these tokens termed Ethereum killers. The change he believes is due to the faster speeds of transactions they offer along with cheaper fees. He thinks the network has to act fast to stay ahead.
Ethereum 2.0 can help the situation, says Singh, but only it should be released on time. Singh projects that tokens like Avalanche, Solana, and Terra will see massive gains shortly because they keep providing unique ways to solve problems. Su Zhu’s Three Arrows Capital, with this mindset, was recently one of the investors in a fundraiser for Avalanche.
The increased investment in these Ethereum killers is increasing the growth of their decentralized finance and staking pools. It is believed Avalanche, with its recent investment and incentives, may have taken some projects away from the Ethereum network. Ethereum’s dominance of decentralized space is now around 60% from 97% at the beginning of the year.