Ethereum founder is optimistic about ETH as corporate treasury assets and warns against excessive leverage risks.

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Recently, the co-founder of Ethereum shared his views on Ethereum (ETH) as a corporate treasury asset in an interview. He believes that incorporating ETH into corporate financial management is a meaningful social practice.

This industry leader emphasized the importance of broadening the channels for accessing ETH. He pointed out that some investors may prefer to buy stocks of treasury companies that hold ETH rather than purchasing ETH directly. This diversification of options is beneficial for the market, as different investors may have varying ways of participation and incentive mechanisms based on their own financial situations and needs.

When asked about his views on the potential risks of the ETH treasury mechanism, he stated that if ETH were to collapse due to the treasury mechanism three years from now, the most likely reason would be excessive leverage. He explained that once the market experiences a 30% drop, it could trigger a chain reaction, leading to more severe declines of 50%, 70%, or even 90%, which could in turn lead to a crisis of trust.

However, this expert remains optimistic about the Ethereum community. He believes that most community members, including financial practitioners, are responsible, unlike some controversial figures. As long as leverage is maintained at a reasonable level and a vicious cycle is avoided, the ETH derivatives market should be able to maintain steady growth.

Overall, he believes that the development of this treasury mechanism is beneficial for the ETH ecosystem.

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GateUser-e51e87c7vip
· 08-10 05:21
Even a fall of 90% can be endured!
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DevChivevip
· 08-10 05:19
Can it go bust in three years? Sounds alarming.
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TokenBeginner'sGuidevip
· 08-10 05:09
Gentle reminder: 90% of the big dump is due to excessive leverage. It is advised that Newbies stay away from such operations and prioritize stability.
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