Throughout a Thursday interview with Bloomberg, Consensys CEO Joseph Lubin issued a warning about cryptocurrency treasury firms, claiming that issues might get “ugly” if there’s an excessive amount of leverage.
“It might get actually ugly if you happen to do not keep prudent danger ranges,” Luban stated.
The Consensys boss has careworn that SharpLink, the brand new Ethereum treasury firm, shouldn’t be leveraged, however he didn’t rule out bringing a little bit of leverage sooner or later.
Over the previous few months, there was a Cambrian explosion of varied cryptocurrency treasury firms. Nevertheless, costs have remained largely stagnant regardless of this company adoption growth.
Lubin has acknowledged that there are numerous elements influencing the costs of cryptocurrency tokens.
“We’re gonna see an incredible quantity of accumulation in Ethereum and Bitcoin,” Lubin stated.
Treasury firms will have the ability to elevate Bitcoin and Ether to the standing of “highest powered cash,” in accordance with Lubin.
Stablecoins will strengthen the greenback
In the case of stablecoins, Lubin is satisfied that they’re already coming into the mainstream.
Lubin claims that Consensys is “actually excited” about the truth that most stablecoin initiatives are primarily based on Ethereum.
“Stablecoins are extremely useful for folks world wide,” Lubin careworn.
Additionally they present a chance for US firms to strengthen the U.S. greenback.