Ethereum Killers are “Toothless” and Mostly Centralized Says VC
The token distribution of the so-called Ethereum killers is skewed, often favoring insiders, and is, therefore “toothless” according to Ryan Sean Adams, the founder of Mythos Capital. In his assessment, distribution is everything and the likes of Solana, Avalanche, Celos, and others fail as insiders own, on average, over 40 percent of generated tokens.
Ethereum is the pioneer smart contracting platform with its weakness. Chief is the scalability problem--a flaw that the development team will fix once Eth2 is live. However, it is decentralized and has the green light from regulators who classify its coin, ETH, as a utility, just like BTC. On the other hand, there are questions around the competitors’ classification mostly because of their level of token distribution. Creators and early investors own a big percentage of their tokens presenting a problem especially when voting counts. In Ryan’s view, token distribution is everything.
Impact on ETH Price:
Neutral. The decentralization question has been hovering for a while and despite the pomp following the launch of “Ethereum killers”, the legacy network is dominant; even drawing more investors and positive comments from regulators. The more there is positive rap, the more ETH benefits much to the disadvantage of ambitious but allegedly centralized competitors.
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