Hours after issuing scathing criticism of the Ethereum network, Three Arrows Capital CEO Zhu Su retracted his comments. He claimed that the previous post was published in the “fire of the moment”. In a Twitter feed Posted a few hours after the original, Su apologized for the blast and claimed there were “big teams working on scaling ETH to L2”.
The CEO made a Twitter rampage against Ethereum on November 21, where it claimed to have abandoned Ethereum just as “Ethereum has abandoned its users despite having supported them in the past.” He also suggested that the network team was suffering from the “founder’s dilemma,” which made them forget the original goal of making finance accessible.
The reason the previous tweet got 4k likes in 1 hour is that users are furious that they are promised a vision of the future, then told that they have to pay $ 100 to $ 1,000 per tx to enjoy it, then being told stories about how they should’ve been smart enough to buy $ 10 ETH.
– Zhu Su (@zhusu) November 21, 2021
Su had received intense criticism on her initial tweets, with enthusiasts and industry supporters calling on the executive for her outburst. In response, he now claims that it was “triggered by a small subset of people and must respect that they do not represent the community at large.” He seems to have referred to a Tweeter by Synthetix creator Kain, who called out the people who “sold for profit maximization” in a tweet on Nov. 20.
Earlier this month, Three Arrows Capital was announced as an investor in Blizzard, a fund aimed at promoting the development of Ethereum’s competitor, Avalanche. This had allowed the protocol to reach the top 10 in crypto by gaining new heights. In his tweet, Kain claimed that those who leave ETH for such platforms will return to Ethereum once scalability is provided by Layer 2 protocols.
In his apologies, Su claimed that he did not appear to have any solutions to the problems faced by Ethereum, adding:
“The millions of new users who are arriving should not be ashamed of going to other ecosystems. Developers shouldn’t be ashamed to rely on them either.
The problems Su brought to light are all related to the high gas fees the network charges for each transaction. The Ethereum network was unable to scale up to its adoption, resulting in congestion issues and higher fees. Although Layer 2 solutions have emerged recently to address these issues, they have yet to reduce costs as significantly as expected. On this, Su argued,
“It costs $ 2,000 to buy a domain name today. Thousands to deploy contracts. A single token shipment costs $ 50. It’s dystopian and should be treated as such – instead, it’s celebrated because of the cost burn. It’s a rentier mentality and I think it’s dangerous.
He went on to say that DeFi was created to bank unbanked people, and ETH supporters at the time criticized Bitcoin for its exorbitant transaction fees. Instead, ETH’s high fees had now turned it into an elitist institution for the wealthy, with huge amounts of users excluded.
In 2014, ETH co-creator Vitalik Buterin said that “the internet of money” should not cost $ 0.05 per transaction, ”compared to Bitcoin. Fast forward to today Today, the Ethereum gas fee is around 0.012 ETH, or $ 50 per transaction.
An ETH developer, Tim Beiko, supported Criticism of Su in acknowledging her concerns about high gasoline costs and lower than expected adoption rates. He also assured the executive that “a lot of smart people are working on Ethereum” to solve its problems.