Vitalik Buterin Hasn't Staked All His ETH Holdings

Vitalik Buterin Hasn’t Staked All His ETH Holdings – Here’s Why

Updated: 02 July 2023

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Vitalik Buterin, the co-founder of Ethereum, recently revealed that he has chosen not to stake a large portion of his ETH holdings due to concerns regarding the current infrastructure supporting the service.

Vitalik Buterin Expresses Concerns over Ethereum Staking, Opting for Caution

During an interview on the Bankless Podcast, Buterin expressed unease about the security aspects of staking a significant amount of ETH, citing the complexities involved in setting up multisignature (multi-sig) wallets.

Staking requires users to make their Ethereum (ETH) keys public on an online system, and for safety, it necessitates the use of multi-sig wallets.

However, Buterin highlighted that setting up multi-sig wallets for staking purposes is still a challenging process with various complications. Consequently, he has opted to stake only a small fraction of his ETH holdings.

Buterin’s comments caught the attention of Charles Hoskinson, the creator of Cardano and a former collaborator with Buterin on the early stages of Ethereum.

Hoskinson expressed surprise and stated that all of his ADA (Cardano’s native cryptocurrency) is staked, emphasizing that this is the intended approach for a properly designed proof-of-stake protocol.

Meanwhile, Buterin also made headlines when discussing the regulatory landscape of cryptocurrencies in the United States.

In light of recent lawsuits against crypto exchanges Binance and Coinbase by the U.S. Securities and Exchange Commission (SEC), Buterin expressed sympathy for projects like Solana, Cardano, and Polygon, which were listed as “crypto asset securities” by the SEC.

He stated that he feels it is unfair for his competitors to face such regulatory scrutiny and believes that Ethereum’s success should not come at the expense of other blockchains.

Vitalik Buterin Extends Helping Hand to Struggling Crypto Projects Amid Regulatory Pressure

In a show of compassion, Vitalik Buterin has expressed deep empathy for projects like Solana (SOL) that are grappling with significant challenges in the face of mounting regulatory scrutiny.

Buterin’s heartfelt remarks shed light on the struggles faced by the blockchain ecosystem as a whole, going beyond the conventional narrative of competition between different projects.

The one comment I'll make is that I feel bad that @solana and other projects are getting hit in this way. They don't deserve it, and if ethereum ends up "winning" through all other blockchains getting kicked off exchanges, that's not an honorable way to win, and in the long term…

— vitalik.eth (@VitalikButerin) June 30, 2023

In a recent social media post, Buterin conveyed his concern over the hardships that projects like Solana are enduring. He lamented the undeserved predicament they find themselves in due to regulatory authorities categorizing certain cryptocurrencies as securities, which subsequently takes a toll on their market performance.

Buterin emphasized that Ethereum’s triumph would be hollow if it meant other blockchains were forcibly removed from exchanges under the banner of victory.

The increasing scrutiny from financial regulators worldwide has sent shockwaves throughout the cryptocurrency industry.

This regulatory pressure stems from attempts to classify specific cryptocurrencies as securities, subjecting them to a different regulatory framework that could potentially hinder their market reach and disrupt trading on numerous exchanges.

Solana, in particular, has been bearing the brunt of this regulatory storm. The project is currently under investigation by authorities to determine its classification as a security. Moreover, Solana has been grappling with the aftermath of the FTX crash, making its road to recovery steep and convoluted.

The combination of regulatory obstacles and recovery efforts has created a challenging environment for Solana and other projects alike.

Buterin’s comments shed light on a more profound issue at play: the encroachment of the centralized world upon the blockchain and crypto space.

Rather than viewing the competition solely between Ethereum and other projects, Buterin recognizes the true adversary as the expanding centralized power that threatens to stifle innovation. He urges the entire industry to stand united against the encroaching threats and challenges posed by this growing centralized influence.

As the cryptocurrency landscape continues to evolve, Buterin’s compassionate stance serves as a reminder that the true victory lies in fostering an ecosystem where all projects can flourish, unburdened by undue regulatory pressure. If you’re looking for potentially profitable projects in the space beyond popular tokens, Wall Street Memes is a good investment option for early movers.

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