Michael Saylor, a bitcoin maximalist and the former CEO of the business analytics company MicroStrategy, believes Ethereum could be facing a major crash in the near future on par with the TERRA stablecoin collapse which essentially disappeared overnight. Saylor has been a vociferous Bitcoin maximalist, favoring Bitcoin and only Bitcoin.
MicroStrategy, under his leadership, bet $4bn on bitcoin, and now holds 130k BTC. The company is also working on Lightning Network platform solutions.
Saylor has asserted Ethereum and cryptocurrencies other than Bitcin are all securities. He argues that Ethereum’s Proof of Stake staking constitutes an investment contract and urged the US Securities and Exchange Commission to “pretty much shut down all of it.” He champions Bitcoin as the only “ethical” crypto asset.
Saylor has tweeted in favor of Bitcoin. “Bitcoin is engineered to be stable, robust, and increasingly secure & efficient over time based on Proof of Work and ASIC technology advances.”
He contrasts Bitcoin’s proof of work with PoS. “Proof of Stake protocols are inherently unstable, inefficient, opaque, and risky due to their fragile design.”
He’s also taken aim at Ripple, the cross-border payments solution, and the native token of XRP’s Ledger (XRPL):
“Ripple is an unregistered security… There’s a company. The company owns a bunch of it. They sell it to the general public, but they never took the company public. There’s no disclosures, right? So the SEC’s position is ‘you’re selling an unregistered security’. It’s a crypto token, right? Just like Ethereum is an unregistered security. It’s controlled by a few people in the Ethereum Foundation and Consensys… Just like FTT. Just like Solana. They’re all unregistered securities…”
Saylor contends most cryptocurrencies are unregistered securities. “I think the best thing for the world would be if the SEC pretty much shut down all of it. It’s all unethical, right? I mean the Bitcoin position would be Bitcoin is an ethical commodity. All of these other altcoins are unregistered securities. They’re all just equity tokens issued by a company in order to get around going public and they’re committing securities fraud, Ethereum included, of course. Especially Ethereum.”
He notes that Ethereum has 20 billion dollars of $ETH token locked up in the staking contract. There is no guarantee anyone will return those staked ETH. “Now, isn’t that the definition of an investment contract? If a bank took 20 billion dollars of your assets, froze the the window, and said, ‘you can’t have your money back ever, it may be in the year 2024, we’re not sure, we’re just going to keep it, we may actually give you interest on it, we may take it all, we may slash it.”
He adds: “That’s the definition of a security, right? It’s an investment of money in a common enterprise, relying upon the efforts of others and expectation of profit. The whole point is if you want to crypto asset to be a commodity, you can’t rely upon four, engineers, a company, a CEO. If a person can make a decision, It’s not a commodity.“
Be First to Comment