‘Crypto is a damn casino for dum-dums,’ Ethereum developer says

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As a seasoned researcher with over two decades of experience in the tech industry, I find myself deeply resonating with Péter Szilágyi’s recent sentiments towards the crypto space. Having worked on projects ranging from AI to blockchain, I’ve seen firsthand the transformative potential technology holds for humanity.

Peter Szilagyi, a key developer at the Ethereum Foundation, has shown some disappointment about the cryptocurrency sector in recent posts on his social media platform.

During a recent Ethereum (ETH) sell-off on a Monday, Szilágyi expressed doubts about the crypto industry’s priorities, implying that many participants are more concerned with emulating Vitalik Buterin and profiting from “value extraction” rather than developing practical products and truly adding value.

I frequently ponder if my career path might be misaligned. For instance, consider SpaceX – whether they successfully launch a rocket towards Mars or it explodes, both instances contribute to human progress in different ways. However, when it comes to cryptocurrency, I find myself questioning its purpose as it seems more like a gambling house for the uninformed rather than a driving force for meaningful advancement.

— Péter Szilágyi (karalabe.eth) (@peter_szilagyi) August 5, 2024

Szilágyi expressed concern about the industry’s reckless behavior, likening it to a casino where people buy luxury cars like Lamborghinis when prices increase and face losses when they decrease, with little or no meaningful impact on humanity. In contrast, he pointed out companies such as SpaceX that develop beneficial products, suggesting that if the industry cannot produce such items, it may be necessary for it to close down.

Szilágyi pointed out that although Bitcoin (BTC) aspires to be a secure investment, much of the crypto sector seems to focus on unnecessary activities instead.

Ethereum is tanking

At a moment marked by turmoil in Ethereum’s ecosystem, a wave of doubt arises. The cryptocurrency has experienced a significant setback, plunging 32% over the past week, which represents the largest drop in the market this year. Currently, Ethereum is trading at $2,360, representing a daily decrease of 12.05%, and this dip has caused it to fall below the lower Bollinger Band at $2,650, suggesting possible overselling.

As I pen this down, Ethereum is currently exchanging hands at approximately $2,360. However, just a few hours ago on Monday morning, it was being traded at around $2,200.

Approximately 278,000 cryptocurrency traders faced forced closure of their positions within a 24-hour period. The largest amount of these liquidations occurred in the Bitcoin market, totaling around $362 million, while Ethereum followed closely behind with approximately $345.7 million in liquidated trades.

In simpler terms, the total value of all open crypto positions decreased by about 18.7%, ending at around $47 billion. This decline was part of a broader trend in the cryptocurrency market, where the overall market value dropped by approximately 13.4% to roughly $1.94 trillion.

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2024-08-05 17:54