Why this crypto billionaire abandoned Ethereum

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Ethereum, which is the second largest cryptocurrency project in the world, has enjoyed support from major and high profile investors in recent years. Its growth over the past year has helped further strengthen the reason investors tend to choose altcoin over Bitcoin. Su Zhu, CEO and CIO of Three Arrows Capital, a Singapore-based fund management company, is one who has openly and primarily supported Ethereum in the past.

Zhu, who has backed Ethereum for some time, recently announced that he is leaving the digital asset behind. It came as a shock, but the reasons Zhu made the move turned out to have some merit and have made some in the space question the future of blockchain.

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Zhu leaves Ethereum

In a series of tweets posted to Twitter, the CEO explained the reasons he left the second largest cryptocurrency on the market. According to Zhu, the barriers to entry for Ethereum had grown too high for it to be a viable investment for newcomers. He explained that just as he abandoned the project, the project also abandoned its users.

Yes, I have given up on Ethereum despite its support in the past.

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

The idea of ​​sitting there jerking off watching the burns and concocting purity tests, when zero newcomers can afford the chain, is disgusting.

– Zhu Su (@zhusu) November 21, 2021

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Zhu explained that Ethereum had grown too big to care what the blockchain planned to do in the beginning, implying that the project had strayed. He then suggested that he needed a bear market-style booster to get him back on track. On the flip side, the CEO had also suggested that migrating to a new blockchain might be the next best thing.

Going further, Zhu had responded to the negative comments his early tweets had received from the Ethereum community. He pointed out the exorbitant fees that are now required to transact on the Ethereum network, stating that users are furious at being promised a vision of the future, then told them they have to pay 100 to 1,000. $ per tx to take advantage of it and then stories are told about how they should have been smart enough to buy $ 10 ETH.

Waiting for a new blockchain

Zhus ‘tweets come after his fund management firm, Three Arrows Capital, was revealed to be invested in rival Ethereums’ blockchain, Avalanche. It was revealed that the company had been a contributor to Blizzard, which funds developers who rely on the Avalanche blockchain. Blizzard hosts a fund of $ 200 million specifically targeted for this purpose.

ETH trending at $ 4,151 | Source: ETHUSD on TradingView.com

Additionally, a wallet that was said to have been attached to Three Arrows Capital had moved a significant amount of Ethereum to the FTX crypto exchange. It is assumed that the roughly $ 77 million worth of ETH was moved to the platform to be sold.

Featured image from Analytics Insight, chart from TradingView.com

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