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Ehtereum's Vitalik Buterin Supports ETH Holdings, Cautions Against Risky Debt

Key Takeaways

  • ​Vitalik Buterin stated that he supports ETH treasury firms for expanding access to Ethereum investment;
  • He warned that excessive borrowing by these firms could lead to serious market risks;
  • Buterin noted that most ETH-focused companies act responsibly and avoid reckless behavior.

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Ehtereum's Vitalik Buterin Supports ETH Holdings, Cautions Against Risky Debt

Vitalik Buterin, co-founder of Ethereum, has voiced his support for companies that hold Ethereum ETH $3,959.56 as part of their corporate treasury strategy.

In an August 7 episode of the Bankless podcast, Buterin said that businesses buying and holding ETH can help expose the token to more types of investors.

He explained, "There are definitely valuable services that are being provided there". He noted that it gives people "more options", depending on their financial situations.

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The idea of crypto treasury companies has gained traction, especially among investors looking for exposure to digital assets like Bitcoin BTC $114,649.39 and Ethereum through traditional markets.

Despite his support, Buterin cautioned that problems could arise if these companies rely too much on borrowed money to purchase more ETH than their actual funds allow. He said:

If you woke me up three years from now and told me that treasuries led to the downfall of ETH, then, of course, my guess for why would basically be that somehow they turned it into an overleveraged game.

Still, Buterin seemed hopeful that this scenario would not play out. He noted that most ETH holders and treasury firms are careful and responsible. "These are not Do Kwon followers that we’re talking about", he said.

Buterin recently shared that he supports "copyleft" licensing, which requires anyone who uses shared code to also make their own changes public. What did he say? Read the full story.

Aaron S. Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

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