Vitalik Buterin Weighs In on Ethereum Treasury Companies

According to Buterin, these firms typically acquire ETH using funds from investors rather than their own balance sheets. He noted that the model provides alternative channels for people to gain exposure to Ethereum, which adds value to the ecosystem.

Risks and Sustainability:

While acknowledging the benefits, Buterin cautioned that treasury companies could pose a risk to Ethereum if they rely too heavily on leverage.

He emphasized, however, that most players in the Ethereum ecosystem are responsible and that properly managed treasury companies should be able to sustain themselves in the long run.#Vitalik #Ethereum