Ethereum has come under fire from bitcoin maximalist and former MicroStrategy CEO Michael Saylor, who compared the network to LUNA, which tragically collapsed in May 2022. Notable crypto firms. Now, Saylor has pointed the finger at Proof-of-Stake (PoS) networks like Ethereum for having the possibility of crashing like the infamous Terra.
Will Ethereum break like LUNA?
In a Twitter post, the former CEO of MicroStrategy highlighted that Ethereum is at risk of seeing a LUNA-level event. The argument was basically a comparison of bitcoin with other cryptocurrencies like Ethereum, which Saylor believes are unstable.
The tweet included a link to a Youtube video by Trader University who elaborated on the Ethereum blockchain and why there might be a problem with the PoS network. He highlights the fact that the Ethereum network relies on staked ETH to function, which at this point sees a lot of coins being staked because there is no way to withdraw them. However, Matthew R. Kratter notes that once the withdrawal code becomes available and if the price of the cryptocurrency falls further, more users will be inclined to withdraw their coins.
At the end of the video, Kratter then calls for regulators to investigate PoS networks like Cardano and Ethereum to determine if they are at risk of “catastrophic implosion risk.” This is in an effort to prevent another event like the collapse of LUNA.
Saylor then compares the network to bitcoin in his tweet, saying, “Bitcoin is designed to be stable, robust, and increasingly secure and efficient over time based on Proof-of-Work and ASIC technology advancements.” By contrast, “proof-of-stake protocols are inherently unstable, inefficient, opaque, and risky due to their fragile design,” he added.
ETH takes a dive as speculations gain momentum | Source: ETHUSD on TradingView.com
Drawing the anger of the followers
Michael Saylor has always been a vocal bitcoin maximalist, preferring the pioneering cryptocurrency over all others in the space despite its performance. This is not the first time Saylor has criticized Ethereum, but his most recent attempt has drawn the ire of ETH supporters.
A user points to MicroStrategy’s bitcoin investments that were made under his leadership. At current prices, the company is experiencing unrealized losses on its BTC holdings, so a similar investment in ETH would have resulted in a profit for the company, as well as passive income if the coins were staked.
hahaha Saylor… what a BIG mistake you made… pic.twitter.com/KvGg65nRfw
— $ETH 🚀🦇🔊 (@Dark86268590) December 14, 2022
However, Saylor remains a staunch supporter of bitcoin and his Twitter page is proof of this. One of his most recent tweets includes an image of a bitcoin light bulb with the caption “Bitcoin is Eternal Light.”
#Bitcoin It is Eternal Light. pic.twitter.com/4Ht8EgpXkC
—Michael Saylor⚡️ (@saylor) December 14, 2022
Featured Image of Coingape, Chart from TradingView.com
