The creator of Ethereum, Vitalik Buterin, has raised concerns about the possible dangers posed by companies that hold Ethereum (CRYPTO: ETH) in their balance sheets.
What Happened: Buterin warned that the overleveraging practices of companies holding ETH could potentially trigger a collapse of the cryptocurrency.
During a recent interview he said, “If you woke me up three years from now and told me that treasuries led to the downfall of ETH, then, of course, my guess for why would basically be that somehow they turned into an overleveraged game, and then at some point a 30% drop turned into forced liquidations that turned into a 50% drop and then a 70% and 90% drop, and then that got compounded with a loss of credibility.”