Three Arrows Capital chief criticises Ethereum and calls the cryptocurrency an ‘anti-utopia’

The CEO of Singapore-based venture capital firm Three Arrows Capital (3AC), Zhu Su, criticised Ethereum for high fees that prevent newcomers from using the blockchain.

Yes I have abandoned Ethereum despite supporting it in the past.

Yes Ethereum has abandoned its users despite supporting them in the past.

The idea of sitting around jerking off watching the burn and concocting purity tests, while zero newcomers can afford the chain, is gross.

— Zhu Su 🔺 (@zhusu) November 21, 2021

«Yes, I have abandoned Ethereum, despite supporting it in the past. […] The idea of sitting around idle and jerking off watching the burn and concocting purity tests, while exactly zero newcomers can afford the chain, is gross,» — wrote him.

According to Zhu, Ethereum largely suffers from the «founders’ dilemma» — the latest ones are already too rich to remember what they originally set out to do. His remark drew more than 4,000 likes in an hour.

«Users are furious that they are promised a future, then say that they must pay between $100 and $1000 per transaction to enjoy it, and afterward tell stories about how it would have been smarter to buy ETH at $10», — объяснил Zhu.

The head of 3AC also retweeted a post by Messari founder Ryan Selkis, who noted that fully using Ethereum is affordable only to accredited investors.

I love ETH but it takes $10k to test a few new products and learn the ropes. Better than college, I guess.

— Ryan Selkis (@twobitidiot) November 21, 2021

«Не имеет значение, является ли Ethereum ценной бумагой, потому что единственные люди, которые могут себе позволить использовать его, в любом случае аккредитованы. Я люблю ETH, но для того, чтобы протестировать несколько новых продуктов и научиться работать с ними, нужно потратить $10 000. Лучше, чем колледж, я думаю», — написал Селкис.

Subsequently, Zhu softened his stance, saying that the term “abandon” was the wrong word. He acknowledged he got carried away and there are “great teams” working on layer-2 scaling solutions.

He said he would like to see a roadmap for the first iteration of the network, as well as updates that “focus on users rather than the welfare of holders.”

Want to soften this and say abandon is the wrong word. Was heat of the moment. I’m sorry.

There are great teams working on scaling Eth on L2.

Would’ve preferred to see eth1x roadmap. Also would’ve preferred focusing on users rather than holders welfare in upgrades. https://t.co/N3YTAbfVBi

— Zhu Su 🔺 (@zhusu) November 21, 2021

«Сегодня покупка доменного имени [речь о системе Ethereum Name Service] обходится в $2 000. Развертывание контрактов — в $1000. Простая отправка токена стоит $50. Это антиутопия и к ней следует относиться именно так, а не праздновать сжигание комиссионных. Это менталитет рантье, который я считаю опасным», — добавил он.

Ethereum has long been criticised for high transaction fees. In October 2021, the average above $50. According to Glassnode, at the time of writing the average fee in the network stood at $39.

As noted in November, Binance announced the integration of Arbitrum One. Clients gained the ability to deposit ETH through the network of this Layer-2 solution.