Ethereum is a centralized scam, and the future of Ponzi memes. This isn’t to say you can’t make money from ETH. However, there is some risk to getting involved in the largest Ponzi scheme facilitator the world has ever seen.
- Pre-mine: Ethereum’s launch misled investors by suggesting there was merely a 12 million gifted pre-mine, but in actuality, Ethereum started with a 72 million ETH pre-mine. Sixty million of which were sold as an initial coin offering (ICO). This is a serious concern in light of the SEC lawsuit of Ripple as an illegal security. Indeed Ethereum arguably fits the criteria to be considered an illegal security by the Howey test .
- Scamcoins: There are now countless ERC20 pyramid scams running on top of Ethereum. This isn’t by necessity a problem with Ethereum itself. At the same time, being the facilitator of scams isn’t a good quality to have. How many Ponzi meme pyramid schemes have now been launched on the network again?
- Founders: Co-founder Vitalk and others in the Ethereum space are known scammers. Check out, Gregory Maxwell: “Vitalik Buterin Ran A Quantum Computer Scam”, Quantum Computing and Bitcoin with Vitalik Buterin and Vitalik’s Quantum Scam, I was wrong about Ethereum, and Ethereum and Ethereum Classic are Scams and so are the developers that build on them.
- Objective: Ethereum has no clear objective. Ethereum developers are willing to embrace alterations to the core objective of the protocol in search for product market fit. They’ve tried world computer, dapps, crowdfunding, NFTs, DeFi, open finance, radical markets, store of value, and more. They also advertised immutability and unstoppable contracts that were then immediately reversed with multiple hard forks. The inflation distribution rate and final algorithm isn’t even defined.
- Centralization: Vitalik has full control over the whole project. Consider the DAO contract. Someone found a way to drain ETH while still following the rules of the smart contract. So Vitalik rolled back the entire blockchain because ethereum is centralized and Vitalik can do whatever he wants. He renamed the real Ethereum blockchain as Ethereum Classic and called his rolled back chain Ethereum. ETH miners also recently said they weren’t going to follow Vitalik into adding a Ponzi style transaction fee burn, so Vitalik called their consensus a 51% attack and changed the rules.