Zhu Su, CEO and founder at hedge fund Three Arrows Capital (3AC), tweeted that he had “abandoned Ethereum even though supporting it in the future,” before retracting the statement.
Su stated in the Nov. 21 thread that Ethereum culture “suffers massively” from the Founders’ Dilema and that everyone is already too rich to remember what it was they set out to do.
Yes, I have given up on Ethereum despite having supported it in the past. Yes, Ethereum has abandoned its users, despite having supported them in the past. It is absurd to imagine sitting around and watching the burn while concocting purity test formulas, when no newcomers are able to afford the chain.
— Zhu Su (@zhusu) November 21, 2021
Although he has since retracted the statement, the original tweet was still in use at the time. He sent a follow up tweet five hours later in which he encouraged his followers to “work towards the same goal” and stated that he loved Ethereum and all it represents.
Su sent a second tweet, seven hours after he posted the follow-up. He apologized for his original statement and said he wanted “to soften” it.
You might want to soften the blow and say that abandon is the wrong word. It was heat at the time. I’m sorry. There are many great teams working on scaling Eth via L2. I would have preferred to see an eth1x roadmap. I would prefer to see upgrades that are focused on users, not holders welfare. https://t.co/N3YTAbfVBi
— Zhu Su (@zhusu) November 21, 2021
“There are many great teams working to scale Eth on L2. I would have preferred to see an eth1x roadmap. He also wrote that he preferred to see upgrades focused on users and not holders welfare.
“I don’t know the solution. However, I know that for the millions of users who are coming, it is not appropriate to shame them for moving to other ecosystems. Devs should not be ashamed of building on these ecosystems.
The layer-two solutions were created to scale Ethereum and reduce the network’s fees. They handle transactions from the Mainnet (or layer 1), which is the blockchain.
Three Arrows Capital was named as an investor in Blizzard (a fund that promotes the development of Avalanche (AVAX), an Ethereum competitor) in November.
AVAX promoted Dogecoin, DOGE (or Dogecoin) from its position as the 10th most valuable crypto market capitalization. It reached a market cap in the $30.32 billion range after the initial tweet. Since then, it has fallen to $29.3 Billion.
Three hours after publishing his apology and retracting his original statement, Su tweeted a graph showing AVAX’s growth captioned ‘top 10’.
This outburst seems to have been in response to Synthetix creator Kain who in a Nov. 20, tweet called out people who “sold out to pursue profit maximization”.
Kain wrote, “Remember this when all of them flooding back into Ethereum ecosystem once L2 scaling is inevitable.”
This little tantrum makes all the ratios Su and his shill armies spent yesterday worth it. The Ethereum community now knows his true thoughts. It was great to be able flush the wolf from its sheep clothes. https://t.co/iQFCQQoljm
— kain.eth (@kaiynne) November 21, 2021
Su also asked that Ethereans remember the original goal of decentralized finance “to bank the unsbanked.” He reminded them that Bitcoin (BTC), in the past was criticised for its $0.05 gas fee.
Vitalik Buterin, co-creator of Ethereum, stated in 2014 that Bitcoin’s “Internet of Money” should not cost $0.05 per transaction. It’s absurd. Current Ethereum gas fees cost around 0.012ETH or $50 per transaction.
Related: Record Inflows to Layer-two and Multichain DeFi Platforms, as Ethereum fees soar
Antonio Juliano, founder of derivatives exchange dYdX, added to the discussion. He said that Su’s tweet was “much more harsher than he would like”, but he “somewhat in direction[s]”.
“Ethereum hasn’t executed in the last few years. There has not been a single useful 10x improvement in Ethereum’s performance over the past 4 years.
Tim Beiko, an Ethereum protocol developer, responded to Su’s tweets. He acknowledged Su’s concerns about high gas costs and lower adoption than expected.
He said that “a lot of smart people working with Ethereum are aware of it and spend their time trying to fix.”