As an experienced analyst with a background in blockchain technology and financial markets, I find the history of Ethereum’s funding and decentralization a concerning issue. While the recent approval of Ethereum ETFs in various jurisdictions is a positive sign for the altcoin’s mass adoption, the questions surrounding its decentralization remain valid.
As an experienced crypto investor, I’m excited about the remarkable growth of the Ethereum (ETH) network over the past few years. We’re now entering a pivotal transition phase that could significantly accelerate mass adoption. Notably, the Hong Kong regulatory approval of spot Ethereum exchange-traded funds (ETFs) earlier this month has set the stage for similar products in the US. The US government is reportedly preparing to approve around a dozen such ETFs, which could bring Ethereum closer to mainstream financial institutions and investors.
Despite ongoing debate, the degree of decentralization in the Ethereum network remains a topic of contention among regulators and investors. The proposed crypto FIT21 bill even defines a blockchain as decentralized when no individual entity wields over 20% of the voting power.
How was Ethereum ICO Funded?
As a crypto investor, I’ve come across intriguing findings from TruthLabs, a well-known on-chain detective. According to their analysis, Ethereum’s origins can be traced back to funds associated with the notorious Silk Road darknet marketplace. Specifically, they pointed out that the wallets used in Ethereum’s initial coin offering (ICO) on the Bitcoin network and My Ether Wallet (MEW), where the founders raised funds, were filled from the same address linked to the Mt.Gox exploiter.
Ethereum, the blockchain notorious for extensive Theft, Fraud, and Money Laundering activities unparalleled in history, was initially financed using Bitcoin taken from the very Silk Road address that Ross Ulbricht illegally obtained. Previously, I mentioned how several exploits, such as the DAO hack, were orchestrated by members of Ethereum’s own team. (TruthLabs’ statement)
As a data analyst examining the history of Ethereum’s inception, I discovered that the network was highly centralized from its Initial Coin Offering (ICO). The Ethereum founders received substantial mining rewards, which contributed significantly to this centralization. Furthermore, I uncovered that the Ethereum team discreetly amassed more Ether from nine distinct mining pools.
Vitalik Buterin, Joseph Lubin, and ConsenSys, along with other members of the Ethereum team, obtained over 2.5 million Ether before 2018, according to TruthLabs. It’s been reported that this team later sold a significant portion of their Ether through the Bitfinex cryptocurrency exchange.
In the third part, it was disclosed that Lubin, Vitalik, Consensys, and the Ethereum team amassed approximately 2.5 million Ether through mining incentives before 2018.
As a researcher studying the mining rewards distributed across various addresses, I can confirm that there are indeed numerous other addresses apart from those listed below which have received such rewards. Nevertheless, examining these specific addresses will provide valuable insights into the Bitcoin network and its transaction history.
— TruthLabs 🫡 (@BoringSleuth) May 22, 2024
Market Implication
In the last week, Ethereum’s price has surged by over 30%, reaching $3,900 during early trading hours in New York on Thursday. The potential approval of a spot Ethereum ETF in the US market has revived investors’ optimistic view for this cryptocurrency.
In addition, many American regulatory bodies hold the view that Ethereum has transformed into a decentralized protocol, paving the way for widespread use of digital assets. With a market capitalization approaching $500 billion, this prominent altcoin boasts over 92 million investors and has facilitated more than 2.3 billion transactions.
As a researcher studying the cryptocurrency market, I’ve observed that Ethereum plays a significant role in supplying liquidity for the vast majority of alternative coins (altcoins) in the industry. Additionally, an increasing number of institutional investors have been adopting Ethereum to digitize real-world assets through tokenization.
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2024-05-23 17:22