surenic on Nostr: The Ethereum dilemma: ETF rejection = bad. ETF acceptance = bad. I expect the ...
The Ethereum dilemma:
ETF rejection = bad.
ETF acceptance = bad.
I expect the Ethereum ETF to be rejected this week.
Unlike #Bitcoin, Ethereum had a pre-mine, an ICO, and most importantly a management team that controls protocol.
As a result, unlike Bitcoin, it is not a neutral asset and will likely be categorized as an unregistered security.
If the ETF is adopted, it opens up another problem for Ethereum:
Since the switch to Proof of Stake, Ethereum has had a centralization problem. This is exacerbated by the adoption of an ETF.
No matter how many coins the #Bitcoin ETFs hold, they cannot exercise control over the network.
Ethereum is different.
The more coins the Ethereum ETFs hold, the more influence they have over the network. This centralizes the network with the ETFs.
However, it could be that the ETFs are not allowed to stake.
This would not solve the problem either, because it centralizes the network at the other end.
If the ETFs actually remove stakable ether from the market, there is less ether that can be staked.
This indirectly gives the largest stakers/pools more influence and passively gives them a larger share of the total pie with every Ether the ETF buys.
#Bitcoin only.
ETF rejection = bad.
ETF acceptance = bad.
I expect the Ethereum ETF to be rejected this week.
Unlike #Bitcoin, Ethereum had a pre-mine, an ICO, and most importantly a management team that controls protocol.
As a result, unlike Bitcoin, it is not a neutral asset and will likely be categorized as an unregistered security.
If the ETF is adopted, it opens up another problem for Ethereum:
Since the switch to Proof of Stake, Ethereum has had a centralization problem. This is exacerbated by the adoption of an ETF.
No matter how many coins the #Bitcoin ETFs hold, they cannot exercise control over the network.
Ethereum is different.
The more coins the Ethereum ETFs hold, the more influence they have over the network. This centralizes the network with the ETFs.
However, it could be that the ETFs are not allowed to stake.
This would not solve the problem either, because it centralizes the network at the other end.
If the ETFs actually remove stakable ether from the market, there is less ether that can be staked.
This indirectly gives the largest stakers/pools more influence and passively gives them a larger share of the total pie with every Ether the ETF buys.
#Bitcoin only.