Valuations of Altcoins are too high says The co-founder of Ethereum – Vitalik Buterin. He has hit out at Tron (a platform that is based on blockchain technology), as well as other blockchain-based platforms, telling mainstream media it was an example of “projects with no soul” on April 18, 2018.
Speaking to the Financial Times alongside comments that ranged from the success of Ethereum to his views about the establishment of the platform, Mr. Vitalik laid more emphases on the drastic increase of the standard tokens of ERC20 using the blockchain of his network.
The Publication of Vitalik’s Explanation:
The published article quotes the explanation of Vitalik Buterin: “There are projects that never had a spirit or soul in them, there are like, ra-ra, prices go up. Vrromm, Lambo, buybuybuy now!”
Following a “critique” of Tron (the Chinese blockchain-based platform) which was not even published, Vitalik Buterin then described the market cap of its token, which rose to over $17 bln at a point in January this year. He said it is an example of a valuation which is “far beyond what this space has really achieved for the world.”
Tron under Suspicion
Tron came under suspicion from different sources as it started to accumulate a lot of investments (very large investments) without having any product that is functioning at the moment, it only announced the implementation of its testnet earlier this month.
Presently, the market cap of the token is much smaller compared to others – and it is just about $3.3 bln. The words of Mr. Buterin echo those of several crypto investors that are continuously putting an eye on key altcoins with an air of suspicion.
Last week, it was EOS’s turn (a smart contract platform) to feel the pressure from Jackson Palmer (the creator of Dogecoin) after the announcement of its mainnet launch yielded a lot of profits despite the fact that the token itself has no official use.