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.

Jimmy Song Questions Buterin's Claims Regarding Ethereum's Progress

Prominent Bitcoin (BTC) developer Jimmy Song recently questioned Vitalik Buterin’s claims that the Ethereum (ETH) project made the “research breakthroughs” required in order to launch the set of upgrades associated with Ethereum 2.0.

Recently, the Ethereum Foundation, a non-profit organization focused on supporting the ongoing development of Ethereum, the world’s largest smart contract-enabled platform for deploying decentralized applications (dApps), revealed its plans regarding how it intends to spend the allocated $30 million to support the ETH ecosystem.

“Can Money Buy Scientific Breakthroughs?”

In response to the Foundation’s report, well-known crypto influencer Tuur Demeester stated via Twitter:

Responding to Demeester’s comments, Buterin explained that adequate research had already been carried out in order to successfully transition from Ethereum’s current proof-of-work (PoW)-based consensus model to proof-of-stake (PoS). The Russian-Canadian programmer also mentioned that the blockchain network’s developers carefully drafted the specifications for the major upcoming Ethereum 2.0 upgrade.

Promising Innovation For Years, Not Delivering

However, blockchain educator Song claimed that Ethereum’s developers had been promising innovation for the past five years. The University of Michigan computer science graduate added that it would be quite challenging to implement, or code, the research and specifications for Ethereum.

In May 2018, renowned economist Dr. Nouriel Roubini, one of the most vocal critics of cryptocurrencies, also argued that Ethereum’s creators had been promising groundbreaking innovations for over five years. Expressing views somewhat similar to Bitcoin developer Song, Roubini said that Ethereum would not be able to scale effectively and that distributed ledger technology (DLT)-based systems would eventually fail.

Roubini, whose comments came during a live debate with Ethereum co-founder Joseph Lubin, also previously accused Buterin of engaging in criminal behavior by “premining” large amounts of ETH.

$500 Million DeFi Ecosystem Built Mostly On Ethereum

However, Buterin clarified that premining was not a crime and that he never held more than 1% of ether’s overall supply at any point. He also revealed his cryptocurrency holdings (at that time) and noted that he no longer holds 1% of the cryptocurrency's circulating supply. Furthermore, he confirmed that at no point did his net worth come close to $1 billion (a claim Roubini made).

Despite the recent criticisms of Ethereum’s ongoing development, there have been a relatively large number of useful dApps launched on the smart contract platform. In fact, nearly the entire half a billion dollar decentralized finance (DeFi) ecosystem has been created on Ethereum’s technological infrastructure.

Notably, Uniswap, an Ethereum-based peer-to-peer (P2P) exchange protocol, recently processed over $20 million in trades and contracts in the past week. This, only after being launched just six months ago.