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We talked a lot Ether The treasure companies ultimately – mostly because they have been one of the major reasons whose bomb has been pumping.
We went to more detail about it here. I am
But that makes Vital Buterin, the father of the garlic itself, have to say about them?
Well, the luck, because we don’t need to understand – Has just hoped on a podcast to share their thoughts, and we are here to report to you.
In the short: is in the idea. I am
When public companies hold – or invest in other companies holding the label – makes life easier for regular investors.
You can only buy the company bag and get Indirect exposure Without installing a billet of encrypting or stressing about the cost.
Plus, it gets in the mouth traditional, traditional money (index funds, pension plans, and 401 (k) s) that are much more comfortable purchase of purchase than buy tokens.
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But it tracks the line to leverage. I am Is where things can go wrong:
1 gener imagine that a treasure company lends money to invest in et.
2Gulges to the drop price.
3s lnders start calling, asking more collating or forced to sell the debt.
4 you are a lot of companies are in the same mess, his sale pushes the price further.
5nds drop the most forced disks, and suddenly, you are in a Lida waterfall – guy as a jenga financial game where a bad move send the tower all the tower.
So the worst scenario of Vitalik is this: The tags of the label are too deep in debt, a price drop passes, and the debt Turn a Market in a brave rock that ragged the price and credibility label. I am
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And while it didn’t give an exact rule, that’s what the whole treasurers could Look in practice:
👉 Stay LEVAI very low, or avoids throughout;
👉 transparent on ethics and debt attached;
👉 Hold the great money reserves to avoid selling forced in bad markets.
For now, you can, valik is enough trust.
Thinks most of the people who reach the tension of the label these days You know better than repeat the same stupid mistakes that has caused past disasters (* Ahem * Land in 2022 * Ahem*).
So, tl; Dr: the treasures can be great for ethical adoption but only handle carefully.
Now you are in the know. But think about your friends – probably have no idea. I wonder who could solve that … 😃🫵 Spread the word and be the hero you know you are! |