Uphold’s Director Of Blockchain And Crypto Research Slams Ethereum Calling It A Paradise Of Eden For Hackers

  • The Ethereum Merge is the long-awaited switch from the inconvenient Proof of Work to the more secure Proof of Stake. Ethereum is projected to become more scalable as a result of the transition, while consuming 99 percent less energy.
  • Ethereum surged more than 5% to an intraday peak above $1,930 on May 30, but declined faster and more than comparable assets in the selloff that followed the next two days.
  • In contrast to most other cryptocurrencies, Ethereum continued to decline last week, with withdrawals totaling US $11.6 million, pushing net outflows year-to-date to US$250 million, according to a Coinshares post published today.

Dr. Martin Hiesboeck, the Head of Blockchain and Crypto Research at Uphold, a trading platform, has made a statement criticizing Ethereum and its developer Vitalik Buterin for his erratic and emotional Twitter posts. Hiesboeck believes that the Ethereum Merge will have a negative impact on the Ethereum network and price.

Ethereum Surged More Than 5% To An Intraday Peak Above $1,930 On May 30

The Ethereum Merge is the long-awaited switch from the inconvenient Proof of Work to the more secure Proof of Stake. Ethereum is projected to become more scalable as a result of the transition, while consuming 99 percent less energy. Expectations for the switch to PoS are still high, but there are still hazards, as there always are. Hiesboeck is skeptical that Ethereum Merge will achieve its objectives. He said this in an emailed statement:

Ethereum surged more than 5% to an intraday peak above $1,930 on May 30, but declined faster and more than comparable assets in the selloff that followed the next two days. On the same day, on-chain data revealed that an Ether address purportedly linked to Three Arrow Capital – a Singapore-based crypto hedge fund — moved 32,000 ETH to the FTX crypto exchange in under one hour. That follows the transfer of 57,000 ETH to exchanges in May. Almost every day now, Ethereum returns from the cold, possibly not to sell right away, but out of simple necessity.

The most concerning are the increasing number of DeFi attacks ($2.06 billion stolen this year) and Vitalik’s increasingly unstable and passionate tweets and forum postings, in which he expresses his displeasure that Ethereum has become a toy for traditional investors and a paradise for hackers. The month of August was chosen for the Merge launch because advisers informed the great mind of Ethereum that this would be the least probable period for the launch to be impacted by significant VC manoeuvres – just as the London Fork was set in August. We still don’t think The Merge will happen.

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ETH Continued To Decline With Withdrawals Totaling US $11.6 Million Pushing Net Outflows Year To Date To US$250 Million

As we pointed out months before The Merge’s first projected launch date last year, the entire concept of staking Ethereum was lunacy from the start. Staking either improves a company’s, project’s, or protocol’s financial position, similar to going public, or it contributes to the network’s capacity and stability. Ethereum does not require either. Ethereum’s operations are well-funded, and the network’s growth is assured — or at least it appeared to be. Now that Strongblock has failed, more nodes will fail, and no one is prepared to leap back in. At the same time, layer-2 solutions such as Boba, to mention a few, provide improved risk-to-reward ratios. Ethereum is in crisis, and there isn’t a quick fix in sight.

In contrast to most other cryptocurrencies, Ethereum continued to decline last week, with withdrawals totaling US $11.6 million, pushing net outflows year-to-date to US$250 million, according to a Coinshares post published today.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing

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