Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Crypto billionaire Su Zhu dumps Ethereum due to high fees

CryptocurrencyNov 23, 2021 08:30PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters Crypto billionaire Su Zhu dumps Ethereum due to high fees

The CEO of Singapore-based hedge fund Three Arrows Capital Ltd, Su Zhu, is abandoning the Ethereum network due to its high transaction fees.

Zhu voiced his frustration in a series of tweets on Sunday, confirming that he had “abandoned Ethereum despite supporting it in the past.” According to the 34-year-old crypto billionaire, he was giving up on the network because it had given up on its users. He explained:

Ethereum culture suffers massively from the ‘founders dilemma’. Everyone is already far too rich to remember what they originally set out to do. Perhaps a bear market is needed to remind them, or we must build elsewhere.
Can you really blame Zhu?Despite several upgrades, such as the London hard fork to the Ethereum network, the cost of transactions has continued to increase over the past few months, especially at peak seasons. According to data from BitInfoCharts, the network’s average transaction fee has risen by 1,360% since the beginning of June to date, surging from just $2.80 to $40.19. Fees peaked at over $62 on Nov. 9, and as of press time, fees were around $51.

For clarity, users are required to pay fees to miners for their transactions to be confirmed and added to the blockchain. The value of transaction costs is primarily driven by how congested the network is. If the demand for processing transactions through the Ethereum network is high, fees will also be high.

‘Dangerous rentier mentality’Zhu also accused early ETH advocates of having a “dangerous rentier mentality.” He claimed that high gas fees made it difficult for new users and those looking to deploy smart contracts to embrace Ethereum.

Users are livid that they’re promised a vision of the future, then told that they have to pay $100 to $1,000 per transaction to enjoy it. This is dystopian and should be treated as such. Instead, it is celebrated because of the fee burn.
He goes further to throw a jab at early Bitcoin and Ethereum users, accusing them of trying to maintain the status quo rather than push for lower fees.

The point of crypto is to offer new generations similar opportunities and freedom, not to ask them to bow down and pay us rent, or to marvel at how early we were,” he said. “I don’t know what the solution is. But I do know for the millions of new users coming, they should not be shamed for going to other ecosystems. Neither should developers be shamed for building on them.
As extreme as it appears, you’d have to admit that Ethereum’s fee issues have given room to cheaper blockchains like Solana, Ronin, and Avalanche.

Continue reading on BTC Peers

Crypto billionaire Su Zhu dumps Ethereum due to high fees
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
Ahti Peensaar
Ahti Peensaar Nov 24, 2021 4:42AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Time for new trading platform
Suzanna Kardos
Suzanna Kardos Nov 24, 2021 12:02AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I don't really blame Zhu, I'll say the same about the ETH advocates having a “dangerous rentier mentality. The point of crypto is to offer new generations similar opportunities and freedom, not to ask them to bow down and pay unnecessary rent..
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email