Why This Crypto Billionaire Abandoned Ethereum

In recent years, Ethereum has been supported by major investors. It is currently the 2nd-largest cryptocurrency platform in the world. The altcoin has seen a significant increase in popularity over Bitcoin over the past year. Su Zhu is the CEO and Chief Operating Officer of Three Arrows Capital, an investment firm based in Singapore. He has publicly supported Ethereum and made major contributions to its development.

Zhu, who had been a supporter of Ethereum for some time recently declared that he would be leaving the digital currency 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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Zhu Exits Ethereum

Twitter CEO Zhu shared his reasons for leaving the second-largest crypto currency on the market, in series of tweets. Zhu said that Ethereum’s barriers to entry were so high it was not feasible for anyone to invest in it. He stated that the same way he had abandoned the project as its users, the project has also abandoned them.

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Zhu said that Ethereum had grown too big for it to be able to focus on the original goals of the blockchain, suggesting that the project was losing its way. The CEO suggested it required a reminder from the bear market to bring it back on track. The CEO also suggested, on the other hand, that migrating onto a new blockchain might be the best option.

Zhu addressed further the criticisms that his tweets received 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.”

We look 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. The firm was a contributor to Blizzard which funds developers who are working on Avalanche’s blockchain. Blizzard holds a $200million fund specifically for this purpose.

Ethereum price chart from TradingView.com

 Source: TradingView.com ETHUSD| Source: ETHUSD on TradingView.com

A wallet, which was attached to Three Arrows Capital, had also been reported to have moved a substantial amount of Ethereum from the FTX cryptocurrency exchange. It has been suggested that approximately $77million worth of Ethereum was moved to the platform.

Featured Image from Analytics Insight. Chart from TradingView.com

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