Ethereum Co-Founder “We Let Price Take Care of Itself”

Francisco Memoria
  • Ethereum co-founder Joseph Lubin has stated he and his team "let the price take care of itself," while they focus on developing the cryptocurrency.
  • He implied short-term swings don't affect developers, who focus on fundamentals.

Ethereum co-founder Joseph Lubin, who also founded blockchain incubator ConsenSys, recently stated that the cryptocurrency’s developers “let the price take care of itself,” while noting he and his team work on developing better infrastructure for cryptocurrencies.

During an interview with CNBC, Lubin was asked about the cryptocurrency’s price drop since mid-January, when it was trading at its all-time high of about $1,360, to its current $437.7 price tag. In response, the cryptocurrency’s co-founder stated:

Our company consensus, and all the people in the Ethereum ecosystem, our software developers, we focus on building infrastructure, we let the price take care of itself.

Joseph Lubin

He noted that years ago, Ethereum was trading at $0.20 to $0.25, and in a short amount of time surged to where it is now. He added that “general fear-greed dynamics tend to cause overshoots and corrections,” adding that “we’re in great shape.”

Per his words, excellent things are being built and we’re entering an “era of scalability for the Ethereum network,” as a layer two infrastructure is being added to the “trust layer,” seen as layer one. The layer two consists of state channels, sidechains, mechanisms like Plasma, and more, according to Lubin.

This second layer will allow the network process “tens or even hundreds of thousands” of transactions per second, with the tokens still being secured by the first layer. He added:

If [the] price is high or if price shoots up and down, it’s actually great for us because it draws attention to our ecosystem, it draws entrepreneurs, it draws technologists and all of that interest drive fundamental value.

Joseph Lubin

Scaling the Ethereum network is seen as essential by various analysts, as it has been clogged to a halt numerous times in the past. The most recent case allegedly saw controversial cryptocurrency exchange FCoin launch a voting system that relied on deposits, and incentivized communities to flood the network to rake in votes.

Despite its low transaction throughput, some are still notably bullish on the cryptocurrency. As CryptoGlobe covered, venture capitalist Alexis Ohanian, a Reddit co-founder, has predicted Ethereum will hit $15,000 by year end, a 3,300 percent increase from current prices.