Ethereum has come under fire from bitcoin maximalist and former MicroStrategy CEO Michael Saylor who has compared the network to LUNA, which tragically collapsed in May 2022. The effects of the collapse continue to haunt the broader crypto market, playing a role in the collapse of many notable crypto firms. Now, Saylor has pointed fingers at Proof of Stake (PoS) networks like Ethereum as carrying a possibility of crashing like the infamous Terra.
Will Ethereum Break Like LUNA?
In a Twitter post, the MicroStrategy ex-CEO highlighted that Ethereum is at risk of seeing a LUNA-level event. The argument was basically a comparison of bitcoin to other cryptocurrencies such as Ethereum which Saylor believes are unstable.
The tweet included a link to a YouTube video by Trader University that elaborated on the Ethereum blockchain and why there could be a problem with the PoS network. It highlights the fact that the Ethereum network depends on staked ETH to run which at this point sees a lot of staked coins because there is no way to withdraw them. However, Matthew R. Kratter highlights that once the code to withdraw is available and if the cryptocurrency’s price falls further, then more users will be inclined to unstake their coins.
At the end of the video, Kratter then calls for regulators to look into PoS networks such as Cardano and Ethereum to determine if they are at risk of “risk of catastrophic implosions.” This is in an effort to prevent another event like the LUNA collapse.
Saylor then compares the network to bitcoin in his tweet saying, “Bitcoin is engineered to be stable, robust, and increasingly secure & efficient over time based on Proof of Work and ASIC technology advances.” In contrast, “Proof of Stake protocols are inherently unstable, inefficient, opaque, and risky due to their fragile design,” he added.
ETH takes a dive as speculations gain momentum
Drawing The Ire Of Supporters
Michael Saylor has always been a vocal bitcoin maximalist, preferring the pioneer cryptocurrency over all others in the space despite their performance. This is not the first time that Saylor has dissed Ethereum but his most recent attempt has drawn the wrath of ETH supporters.
One user points to MicroStrategy’s bitcoin investments which were made under his leadership. At current prices, the company is experiencing unrealized losses on its BTC holdings whereby a similar investment in ETH would have resulted in a profit for the company, as well as passive income if the coins were staked.
Nevertheless, Saylor remains a staunch supporter of bitcoin and his Twitter page is evidence of this. One of his most recent tweets includes a picture of a bitcoin lightbulb with the caption “Bitcoin is Eternal Light.”