Investors and traders may be celebrating the apparent return of “alt season” as crypto values across the board exhibit positive movement, but Ethereum founder Vitalik Buterin isn’t convinced. The cryptocurrency market is currently exhibiting strong bullish signals, with a cumulative market cap of over $388 billion.
While a large portion of this growth is attributed to high market cap cryptocurrencies such as Bitcoin, Ethereum, and Ripple, the top 50 altcoins are almost all experiencing 7-day average positive movement of 5%. Cryptocurrency traders may be enthused by the shift in market sentiment, but Vitalik Buterin has decried the recent surge in interest, stating that most altcoin valuations are “far ahead of accomplishments.” In a lengthy interview with the Financial Times published earlier this week, the Ethereum creator struck out against a number of blockchain projects including Tron, which Buterin cited as an example of “projects that never had a soul.” “There’s projects that never had a soul, that are just like, ra-ra, price go up, Lambo, vrromm, buybuybuy now!” Buterin proceeded to critique the Tron project which, in January, boasted an astronomical market cap of $17 billion USD with no demonstrable product.
While Buterin has remained staunchly opposed to cryptocurrency speculators that maintain a position in the market solely with the intent to capitalize on the new asset class, the Ethereum founders’ qualms regarding the Tron project are valid. Promoted as a blockchain-based protocol designed specifically for the entertainment industry, Tron captured a significant amount of investor capital with no MVP.
Justin Sun, Tron’s founder, gained infamy within the cryptocurrency community for posting a continuous series of “announcements of announcements,” goading investors with promises of partnerships that took an inordinate amount of time to actualize. Tron’s current performance is far more in line with the real value of the platform — only having recently announced testnet implementation, Tron now possesses a far smaller market cap of $3.3 billion.
The criticism that Buterin levels at Tron can be applied to many high market cap projects present within the cryptocurrency ecosystem. Outside of high-profile blockchain projects, the level of speculation and manipulation that occurs within the cryptocurrency market is highly evident. Read more from cryptoslate.com…
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