Home News Three Arrows Capital CEO backtracks on Ethereum abandonment comments

Three Arrows Capital CEO backtracks on Ethereum abandonment comments

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Zhu Su, the CEO and founder of hedge firm Three Arrows Capital (3AC), first stated that he had “abandoned Ethereum despite previously supporting it,” before retracting his comments.

Su said in the Nov. 21 thread that Ethereum culture “suffers enormously from the Founders’ Dilemma” and that “everyone is already much too affluent to recall what they started out to achieve”.

Although the initial tweet had not been deleted at the time of writing, he has now backtracked on his assertion. He claimed “I adore Ethereum and all it stands for” in a follow-up tweet roughly five hours later, urging his followers to “work toward the same objective.”

Su apologised and stated that he wished to “soften” his previous comment, which he wrote in the “heat of the moment,” and that “abandon is the incorrect term” in a follow-up tweet sent nearly seven hours after publishing the follow-up.

“Amazing teams are working on scaling Ethereum on L2. I’d rather have seen the eth1x roadmap. Also, instead of focusing on holders’ welfare in improvements, I would have wanted to focus on users’ welfare,” he stated.

“I’m not sure what to do.” However, I believe that the millions of new users that are expected to arrive should not be stigmatised for leaving the ecosystem. Developers shouldn’t feel bad about developing on top of them, either.”

Layer-two solutions created to assist Ethereum scale and eliminate the network’s excessive costs

By conducting transactions outside the Mainnet, or layer 1, layer-two solutions were created to assist Ethereum scale and eliminate the network’s excessive costs.

Three Arrows Capital joined Blizzard, a fund dedicated to the development of Avalanche, an Ethereum rival, as an investor in early November (AVAX).

Following the first tweet, AVAX dethroned Dogecoin (DOGE) as the tenth most valuable cryptocurrency. With a market value of $30.32 billion. It’s now $29.3 billion.

Three hours before writing his apology and retraction, Su tweeted a graph showing AVAX’s development with the phrase “top 10.”

In a Nov. 20 tweet, Synthetix inventor Kain chastised those who “sold out in pursuit of profit maximisation.”

“Remember this when everyone returns to the Ethereum ecosystem after L2 scaling is unavoidable,” Kain said.

Su also reminded Ethereans to remember decentralised finance’s original purpose of “banking the unbanked”. Noting that Bitcoin (BTC) was once chastised for its $0.05 gas costs.

“The ‘Internet of Money,’ should not cost $0.05 per transaction,” Ethereum co-creator Vitalik Buterin remarked in 2014, referring to Bitcoin. It’s a bit ridiculous.” Gas costs on Ethereum are now approximately 0.012ETH, or $50 per transaction”.

Although Su’s tweet was “far harsher” than he would have wanted, dYdX creator Antonio Juliano contributed to the conversation, stating he “slightly directionally agrees”.

“In recent years, Ethereum has failed to execute. In the last four years, I can’t think of a single tenfold advance Ethereum has achieved”.

Tim Beiko, an Ethereum protocol engineer, commented on one of Su’s tweets, expressing his concern over high gas prices and lower than projected adoption.

“A lot of brilliant individuals working on Ethereum are aware of this and are attempting to address it,” he explained.

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