Altcoins, Analysis, Ethereum

Altcoins Igniting But Ethereum Founder Isn’t Ready for Liftoff

Altcoins Igniting But Ethereum Founder Isn’t Ready for Liftoff

Investors and traders may be celebrating the apparent return of “alt season” as crypto values across the board exhibit positive movement, but Ethereum founder Vitalik Buterin isn’t convinced.

Crypto Price Watch: Price Surges for Bitcoin, Ethereum, Bitcoin Cash, Ripple, Litecoin
Related Story: Crypto Price Watch: Price Surges for Bitcoin, Ethereum, Bitcoin Cash, Ripple, Litecoin

The cryptocurrency market is currently exhibiting strong bullish signals, with a cumulative market cap of over $388 billion. While a large portion of this growth is attributed to high market cap cryptocurrencies such as Bitcoin, Ethereum, and Ripple, the top 50 altcoins are almost all experiencing 7-day average positive movement of 5%.

Cryptocurrency traders may be enthused by the shift in market sentiment, but Vitalik Buterin has decried the recent surge in interest, stating that most altcoin valuations are “far ahead of accomplishments.”

Buterin is Sick of Altcoin Speculation

In a lengthy interview with the Financial Times published earlier this week, the Ethereum creator struck out against a number of blockchain projects including Tron, which Buterin cited as an example of “projects that never had a soul.”

“There’s projects that never had a soul, that are just like, ra-ra, price go up, Lambo, vrromm, buybuybuy now!”

Buterin proceeded to critique the Tron project which, in January, boasted an astronomical market cap of $17 billion USD with no demonstrable product. While Buterin has remained staunchly opposed to cryptocurrency speculators that maintain a position in the market solely with the intent to capitalize on the new asset class, the Ethereum founders’ qualms regarding the Tron project are valid.

Promoted as a blockchain-based protocol designed specifically for the entertainment industry, Tron captured a significant amount of investor capital with no MVP.

Justin Sun, Tron’s founder, gained infamy within the cryptocurrency community for posting a continuous series of “announcements of announcements,” goading investors with promises of partnerships that took an inordinate amount of time to actualize.

Tron’s current performance is far more in line with the real value of the platform — only having recently announced testnet implementation, Tron now possesses a far smaller market cap of $3.3 billion.

Justin Sun Announces Launch of the TRON Testnet
Related Story: Justin Sun Announces Launch of the TRON Testnet

The criticism that Buterin levels at Tron can be applied to many high market cap projects present within the cryptocurrency ecosystem. Outside of high-profile blockchain projects, the level of speculation and manipulation that occurs within the cryptocurrency market is highly evident.

Viewing the weekly and even daily chart patterns of low market cap cryptocurrencies reveals concerning levels of manipulation, with evidence of “pump and dump” groups rife.

Buterin Roasts HODLers

Buterin, who recently captured the attention of the cryptocurrency community for publicly denouncing Bitcoin Cash proponent Craig Wright at the recent Deconomy conference, is widely known to hold enmity toward the Tron project.

Buterin challenging Wright at Deconomy 2018

The ongoing wrath of Vitalik Buterin, however, is not limited to blockchain developers and project founders. In his conversation with the Financial Times, Buterin ridiculed cryptocurrency millionaires that have profited by HODLing their investment through the wild vicissitudes of the crypto market:

“It’s the luck of the draw, where everyone who won the draw seems to feel like they deserved it for being smarter. I was loyal and I was virtuous and I held through and therefore I deserve to have my five mansions and 23 lambos!”

The Wrath of Vitalik: Crypto Savant Hulks Out, Rampages on Twitter
Related Story: The Wrath of Vitalik: Crypto Savant Hulks Out, Rampages on Twitter

Buterin’s evident hostility toward cryptocurrency speculators and his perceived overvaluation of the altcoin market appears to step from a frustration with the lack of focus on the underlying technology behind cryptocurrencies in favor of short-term profits.

Speaking with Israeli financial newspaper, TheMarker, last year, Buterin outlined his perspective on innovation versus capitalization:

“I think that one of the reasons for this is that it is a social revolution wrapped in something speculative, that can make people rich. Sometimes a conflict is created between people that want to change the world and people that see this technology as an investment instrument.”

Buterin may hold a valid perspective, but it’s arguable that the extremely lucrative altcoin market is a key driver in attracting institutional investors to the blockchain sector which, in turn, drives further innovation.

Ultimately, Buterin makes a strong argument for blockchain technology as a disruptor of monolithic financial and societal structures, emphasizing his vision of the true impact of the blockchain revolution:

“Scrappy grocery stores, with five-year-old kids helping mommy and daddy rearrange the water bottles. These are the people you’re actually serving”

Cover Photo by SpaceX on Unsplash

Commitment to Transparency: The author of this article is invested and/or has an interest in one or more assets discussed in this post. CryptoSlate does not endorse any project or asset that may be mentioned or linked to in this article. Please take that into consideration when evaluating the content within this article.

Disclaimer: Our writers' opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.

Did you like this article? Join us.

Get blockchain news and crypto insights.

Join Us on Telegram
Sam Town Author

Sam Town

Samuel is a freelance journalist, digital nomad, and crypto enthusiast based out of Bangkok, Thailand. As an avid observer of the rapidly evolving blockchain ecosystem he specializes in the FinTech sector, and when not writing explores the technological landscape of Southeast Asia.

View author profile