Justin Bons, the founder and chief funding officer of European cryptocurrency fund Cyber Capital, has as soon as once more criticized the operations of Ethereum L2 options. In a current X put up on Saturday, Bons tagged these blockchain platforms designed to enhance the scalability of the Ethereum community as harmful with the capability to cart away customers’ funds unchecked.
Ethereum L2 Centralized Design Poses A Drawback?
Based on Justin Bons, most main Ethereum L2 options are centralized, with single servers typically being accountable for working the platform’s operations. The Cyber Capital CIO states that this design which fits towards the cypherhunk precept of decentralization and safety, will be thought of dangerous to traders as these chains can collapse at any second on account of a singular occasion and even be manipulated to steal customers’ funds.
In backing these claims, Bons made reference to Consensys’ zkEVM Roll-up community Linea whose administration on June 2nd, 2024, initiated a pause in block manufacturing on account of a bug within the platform’s sensible contract.
The acclaimed crypto researcher additionally highlighted when the Optimism chain underwent a 2-hour downtime on February fifteenth, 2024, on account of a bug within the community’s centralized sequencer. Along with these examples, Justin Bons’ report additionally included related incidents with different Ethereum L2 options similar to Starknet, ZkSync, Arbitrum, and Polygon, all of which will be traced to the centralized nature of those initiatives.
The Cyber Capital founder expresses important opposition to those L2 options, stating they don’t supply the identical degree of safety and stability as the primary Ethereum community. As well as, he states whereas an opposed state of affairs similar to lack of consumer funds is but to happen, the truth that such potential exists is very regarding.
Curiously, these statements comply with earlier claims by Bons that Ethereum had fashioned a parasitic relationship with L2s whereby these platforms now nearly run independently of the primary community, with important management over liquidity and different elements essential to the Ethereum ecosystem.
Ethereum Poised For Additional Value Decline
In different information, standard crypto analyst Ali Martinez has postulated that Ethereum might but keep a downtrend in the meanwhile. Notably, the distinguished altcoin produced an underwhelming efficiency in August dropping 22.36% of its worth. Based on the MVRV momentum (180-day), which measures the change of the market worth to realized worth ratio over 180 days, Ethereum nonetheless seems largely overvalued. Due to this fact, its downtrend is probably going removed from a reversal.
On the time of writing, the second largest cryptocurrency trade fingers at $2,500 with a slight lack of 0.99% during the last day. In the meantime, the asset’s every day buying and selling quantity has declined by 55.75% and is valued at $6.85 billion.
Featured picture from Forbes India, chart from Tradingview
