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.

International Banking Group Standard Chartered Joins Enterprise Ethereum Alliance

London-headquartered international banking group Standard Chartered has announced that it has joined the Enterprise Ethereum Alliance (EEA).

Standard Chartered opened its first branch on 29 December 1853. Since then, it has grown to 1,026 branches worldwide (across 60 countries), and 86,000 employees (who come from 125 countries).

It is listed on the London Stock Exchange (LSE) and two of Asia's largest stock exchanges (Hong Kong Stock Exchange and the National Stock Exchange of India). Currently, it has a market cap of over GBP 23.7 billion (around USD 30.35 billion).

The EEA is a "member-led industry organization whose objective is to drive the use of Ethereum blockchain technology as an open-standard to empower ALL enterprises." It has two objectives:

  • "Deliver an open, standards-based architecture and specification to accelerate the adoption of Enterprise Ethereum."
  •  "Create world-class Enterprise Ethereum Client Specifications and testing and certification programs that ensure interoperability, multiple vendors of choice, and lower costs for its members."

Standard Chartered's press release says that it views blockchain "as central to banking and commerce in the digital era, so transactions can be verified, secure and processed in real time.."

Dr Michael Gorriz, Group Chief Information Officer at Standard Chartered, had this to say:

Technology enables us to facilitate trade and investment across our footprint markets, improving client experiences and offering new services. We are excited to be a part of the EEA and look forward to opportunities where we can collaborate with other leading industry players to deepen blockchain research and application in the banking sector.

It also mentions that the bank "is one of the founding members of Voltron, a blockchain-based open industry platform that was launched in October 2018 to digitally create, exchange, approve and issue Letters of Credits (LCs), and recently issued the first LC over the platform for the oil industry." Furthermore, the bank is "co-creating blockchain-enabled supply chain financing solutions with China-based Linklogis, completing its first joint deep-tier supply chain financing transaction for Digital Guangdong and its upstream suppliers."

Some other technology initiatives the bank is involved in include "partnership with Ant Financial to launch the world’s first blockchain-enabled cross-border remittance service from Hong Kong to the Philippines" and its "collaboration with Siemens Financial Services and TradeIX, a digital trade provider, to create blockchain-based smart guarantees for trade finance."

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