In fact, Consensys CEO Joseph Lubin only a month ago was warning potential investors about the risks of over-leverage among crypto treasury companies. As he explained in an in-depth Bloomberg interview recently, it’s vital to keep risks to manageable levels to prevent catastrophic outcomes when things go wrong. He spoke in favor of Ethereum and stablecoins, boldly prophesizing that both would grow, flourish, and come to dominate.
Lubin said that the stagnation in the market today can be explained by a mix of macroeconomic headwinds as well as crypto-specific headwinds. Even with these challenges, he expects to see strong ongoing demand for cryptocurrencies, especially Ethereum and Bitcoin.
"It could get really ugly if you don't maintain prudent risk levels." - Joseph Lubin
Lubin noted the ways in which Ethereum and Bitcoin would grow to become transformational powers in the global financial system. He posited that such currencies could even challenge conventional reserve currencies. He envisions them becoming “high-powered money” down the line.
"We're going to see an amazing amount of accumulation in Ethereum and Bitcoin." - Joseph Lubin
Lubin pointed out the significant global growth of stablecoins. He highlighted their potential to strengthen the U.S. dollar’s global leadership position, and he stressed their far-reaching usefulness.
"Stablecoins are incredibly valuable for people around the world." - Joseph Lubin
He too delighted at news that most of the big stablecoin projects are developed using the Ethereum network.
Lubin further elaborated on SharpLink, Consensys’s recently launched Ethereum treasury management company. Finally, he emphasized that SharpLink is currently operating without leverage, taking a prudent path for other players in the space to follow. His cautionary tale about the dangers of too much leverage can be a key lesson in the booming but treacherous world of crypto markets. Unchecked risk, he warned, was a recipe for disastrous consequences.
