Vitalik Buterin: Companies Buying Ethereum Is Not Without Risk

Creator of Ethereum Vitalik Buterin believes that his brainchild could collapse like a house of cards because of the institutions.

During a recent interview, the developer was pleased that businesses have started buying ETH, similar to Bitcoin, which has long attracted the interest of some company executives. According to Vitalik, this expands people’s opportunities and is good for society. However, he reminded about the dangers posed by the influx of corporate capital.

If you wake me up in three years and tell me that the advent эфириум-treasury firms led to the collapse of ETH, then, of course, I will assume that it was due to the fault of organizations that overdid it with leverage, — Buterin noted.

Apparently, Vitalik fears that the inevitable fall in the Ethereum rate will force companies to get rid of the digital assets stored on their balance sheets, which will cause a chain reaction and intensify the dump, which will result in a massive collapse of ETH.

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Buterin acknowledges the low probability of such a scenario because, as he put it, among institutional investors in эфириум there are no followers of the swindler Do Kwon. In addition, public companies currently account for only 2,5% of the issued ETH coins worth $ 11,77 billion, so they will not be able to significantly influence the market. But if the cryptocurrency reserves grow, institutions will indeed be able to exert significant downward pressure on the price of Ethereum.

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