Vitalik Buterin, co-founder of Ethereum, has voiced his support for companies that hold Ethereum
In an August 7 episode of the Bankless podcast, Buterin said that businesses buying and holding ETH can help expose the token to more types of investors.
He explained, “There are definitely valuable services that are being provided there”. He noted that it gives people “more options”, depending on their financial situations.
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The idea of crypto treasury companies has gained traction, especially among investors looking for exposure to digital assets like Bitcoin
Despite his support, Buterin cautioned that problems could arise if these companies rely too much on borrowed money to purchase more ETH than their actual funds allow. 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 it into an overleveraged game.
Still, Buterin seemed hopeful that this scenario would not play out. He noted that most ETH holders and treasury firms are careful and responsible. “These are not Do Kwon followers that we’re talking about”, he said.
Buterin recently shared that he supports “copyleft” licensing, which requires anyone who uses shared code to also make their own changes public. What did he say? Read the full story.
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