Ethereum coins, as well as all other cryptocurrencies, could possibly hit $0. The Russian-Canadian founder of the second largest cryptocurrency put out a striking statement to his Twitter (NASDAQ:TWTR) followers two days ago. Vitalik Buterin warned cryptocurrency investors of the market’s still new and highly volatile nature. He expressed his concern with seeing individuals investing more than they can actually afford.
Buterin’s post read:
“Reminder: Cryptocurrencies are still a new and hyper-volatile asset class, and could drop to near-zero at any time. Don’t put in more than you can afford to lose. If you’re trying to figure out where to store your life savings, traditional assets are still your safest bet.”
The 24-year-old programming genius has spoken. While many have made considerable amounts of money day trading altcoins, the danger still remains. There have been many individuals that have hit it big gambling but it doesn’t mean that it isn’t extremely risky. Hopefully, uneducated investors dipping their toes in the cryptocurrency market will heed the founder’s warning.
Ethereum (ETH) Update
On February 16th it was announced that six large-scale blockchain projects have allocated $100 million to go towards the Ethereum ecosystem. The six projects include Golem, Maker, OmiseGo, Cosmos, Riden and Global brain. These groups have officially created the Ethereum Community Fund (ECF) and hope to seek the current scalability issue present with the Ethereum network. Vitalik Buterin will advise on this fund and commented on it by saying, “Ethereum has grown beyond my expectations over the last few years, but the work is clearly not finished. Delivering value that matches the hype should be the mantra of 2018; efforts such as the ECF which help organize the development of the ecosystem are going to help to make that possible.”
It remains unclear as to which project will be funded initially but it is aimed at enticing developers to help solve the current issues within the platform. Many of Ethereum’s rivals that offer similar smart contract applications, like NEO and Lisk (LSK) have already solved the issue of scalability with side chains. Hopefully, this funding initiative can help aid in the completion of the testing phase of Ethereum’s scalability “sharding” protocol.
At press time, ETH is trading at $945.61, up 0.45%, in 24 hours.