Announced failure or strategic decision for Two Prime?

The renowned digital investment firm Two Prime has just made a decision that is stirring conversation in the crypto ecosystem: to stop operating with products backed by Ethereum (ETH) to focus exclusively on Bitcoin (BTC).

And no, it wasn’t a silent move; in a strong statement, the firm asserted that Ethereum has lost its way and is no longer an attractive option for serious investors.

According to Two Prime, the recent behavior of ETH has become unpredictable, more akin to that of a memecoin than that of a solid asset.

While Bitcoin has shown some stability even amidst the market turmoil following Trump’s election and its economic impact, Ethereum has recorded extreme fluctuations and a very weak recovery. For the company, this volatility, combined with an apparent loss of confidence from long-term investors, makes it unfeasible to continue offering loans backed by ETH.

Additionally, they highlight the clear difference in institutional demand. While Bitcoin ETFs have surged, buying BTC at a rate 24 times greater than that of ETH, the adoption of Ethereum has stagnated. Part of these ETH purchases, according to the firm, would be motivated by hedging strategies rather than genuine confidence in the asset, distorting the perception of its actual demand.

Two Prime also launched technical and cultural criticisms. They compared Ethereum to Solana, stating that the latter offers better performance, lower costs, and a smoother experience.

They question the use of layer 2 solutions, which they say have eroded Ethereum's business model. But the harshest critique came when discussing the leadership and internal culture of the project: they accuse Ethereum of becoming a bureaucratic organization, lacking clear direction and trapped in ideological debates.