Cryptocurrency fund Three Arrows Capital’s Zhu Su teases to abandon Ethereum for its gas fee problem. Its founder Zhu Su, also an Avalanche supporter, criticizes Ethereum’s gas fee problem on Twitter. Additionally, Zhu Su suggests that founders of DeFi platforms in the Ethereum ecosystem have forgotten their original goal.
Zhu Su founded crypto hedge fund Three Arrows Capital (3AC) with Kyle Davies back in 2012. Three Arrows Capital is now one of the world’s largest crypto investors, with total assets of more than billions of dollars.
Zhu Su’s attack on Ethereum (ETH) started from a dispute with Synthetix founder Kain Warwick. Warwick criticized crypto funds for selling governance tokens of DeFi platforms for profit. In a response, Zhu Su pointed out that Warwick himself sold coins and bought a luxury house in Australia.
Moreover, Zhu Su challenged the DeFi platform for picking the wrong Ethereum scalability solution, causing heavy losses for users. “Everyone is already far too rich to remember what they originally set out to do.”
Su mentioned that in 2016, the Ethereum community attacked Bitcoin for a high network fee of $0.05 per transaction. In 2019, almost every DeFi platform claimed their goal is to “bank the unbanked”. Yet, it takes $50 to send tokens on Ethereum, and thousands of dollars to run applications on the Ethereum blockchain.
Three Arrows Capital Selling ETH on FTX?
Ethereum users have to pay $100 to $1,000 per transaction to enjoy it, and many are angry about the gas fee problem, according to Zhu Su. The crypto billionaire has given up on Ethereum. Meanwhle, Etherscan data shows that 3AC has transferred 17,895 ETH – over $79 million – from its wallet to FTX. This may imply 3AC’s potential dump on ETH.
Later, Zhu Su has softened his criticism of Ethereum. He said there are great teams building Ethereum’s Layer 2 scalability solutions, such as Optimistic Rollup.
But, Zhu Su would have preferred “focusing on users rather than holders welfare in upgrades.” Also, he mentioned that more developers are switching to other blockchains such as Avalanche. “I think both Bitcoiners and Ethereans have too much nostalgia for the past.”
It is worth noting that Zhu Su has been promoting the emerging blockchain Avalanche on Twitter. Also, Three Arrows Capital, along with a16z, Polychain, and other crypto funds, hold a large positions of Avalanche token AVAX.
Avalanche tokens’ market capitalization has soared with the recent announcement of partnering with Big Four accounting firm Deloitte. For a while, AVAX has surpassed Shiba Inu (SHIB) to become the world’s top 10 crypto by market cap.
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