Michael Saylor, the founder, and Executive Chairman of Microstrategy has again launched an attack on altcoins specifically Ethereum (ETH), the second-largest cryptocurrency by market capitalization. A couple of times, Michael Saylor has shown that he only supports Bitcoin, on the claims that many altcoins are unregistered securities and unethical.
Earlier this week, he said in a podcast session that the United States Securities and Exchange Commission (SEC) should shut down all altcoins like Ripple (XRP), Solana (SOL), and Ethereum.
In a recent tweet, the Bitcoin maximalist restated that BTC is the only stable, efficient, ethical, and trusted cryptocurrency. More so, Saylor mentioned that all blockchains adopting the proof of stake consensus algorithm like Ethereum (ETH), and Cardano (ADA) is unethical and prone to collapsing.
“Bitcoin is engineered to be stable, robust, and increasingly secure & efficient over time based on Proof of Work and ASIC technology advances. Proof of Stake protocols are inherently unstable, inefficient, opaque, and risky due to their fragile design,” Saylor said
Noteworthy is that Michael Saylor made this assertion in support of a claim brought forward by a top crypto YouTuber, Matthew Kratter. According to Kratter, Ethereum's current state is similar to that of the collapsed Terra LUNA.
ETH Predicted to Fall like Terra LUNA
Per an update, Kratter implied that ETH could stage a Terra-like breakdown, highlighting the possible factors that could lead to such an occurrence. It's worth noting that Vitalik Buterin's blockchain platform transitioned from the initial Proof of Work consensus algorithm to Proof of Stake (PoS) in September.
Since then, the amount of Ether locked up in the ETH 2.0 staking contract grew significantly. At the time of writing, ETH staking market capitalization is around $19.5 million, according to data available on the Staking Reward platform.
It also bears mentioning that users cannot withdraw their Staked ETH until March 2023 when Ethereum developers enable the feature. According to Matthew Kratter, the current market condition and other factors like the Feds interest rate hike could cause ETH to fall another 50% to $660.
Should this play out and coupled with the enabling of Staked ETH withdrawals, Kratter believes Ether could be the next LUNA. Here is what he wrote in the video description
The lower Ethereum’s price falls, the more people will choose to unstake their coins, which further erodes Ethereum’s security and could lead to a death spiral. Regulators need to look into whether proof of stake protocols like Ethereum and Cardano are at risk of catastrophic implosions like Terra Luna.”
Institutional investors need to be able to explain to their LPs how and why their investment in ETH won’t end as badly as Terra Luna,” Matthew Kratter added.
At the time of writing, ETH is trading for $1,179 per coin. With the bears gaining momentum in the crypto market, it is uncertain how Ether would react.