Two Leaders Abandon Ethereum in Favor of Bitcoin, Attribute Change to 'Meme Coin-Like Characteristics'
HEADLINE:🔥 Two Prime Ditches Ethereum, Calls it "Statistically Broken," Shifting Focus to Bitcoin
DETAILS:"Tired of Ethereum's unpredictable behavior and declining market momentum, algorithmic trading firm Two Prime has decided to cut ties with the cryptocurrency, citing its resemblance to a meme coin rather than a predictable asset," according to the official statement released Thursday.
Two Prime, as an SEC-registered investment advisor, has lent over $1.5 billion against both Bitcoin and Ethereum in the past 15 months. However, the firm argues that the risk-reward ratio for Ethereum has become unjustifiable due to its "statistically broken" trading behavior, declining value proposition, and eroding institutional appeal.
With Ethereum trading at around $1,833, reflecting a 51% year-to-date decline, and Bitcoin near its all-time high, holding over $115 billion in assets in Bitcoin ETFs, Two Prime is confident in the latter's potential.
Despite the Ethereum Foundation appointing two co-directors in March to help Ethereum transition from an early-stage project to a robust base layer of global finance, the firm remains skeptical of Ethereum's direction. Two Prime flags blockchains like Solana as being more appealing for developers and users, offering better speed, cost, and user experience.
While Ethereum struggles with slow development processes, mission creep, and a lack of clear monetization strategy, Bitcoin stands alone as the predictable and scalable asset that Ethereum can no longer match in the eyes of Two Prime.
PERSPECTIVE:As Bitcoin demonstrates consistent gains since the 2024 U.S. elections, it's clear that it meets institutional standards that Ethereum currently falls short of at this time. Traders on the Myriad prediction market remain skeptical about Ethereum's prospects, with a 82% likelihood that ETH will close below $1,900 by Sunday night, as reported by Decrypt's parent company, DASTAN.
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- Despite Two Prime's decision to focus on Bitcoin, they previously lent over $1.5 billion against both Bitcoin and Ethereum.
- The firm argues that the risk-reward ratio for Ethereum has become unjustifiable due to its "statistically broken" trading behavior.
- Two Prime has shifted its focus from Ethereum to Bitcoin, citing Ethereum's resemblance to a meme coin rather than a predictable asset.
- Bitcoin, near its all-time high, holds over $115 billion in assets in Bitcoin ETFs, while Ethereum trades at around $1,833, reflecting a 51% year-to-date decline.
- Two Prime remains skeptical of Ethereum's direction and flags blockchains like Solana as being more appealing for developers and users.
- Bitcoin stands alone as the predictable and scalable asset that Ethereum can no longer match in the eyes of Two Prime.
- Traders on the Myriad prediction market remain skeptical about Ethereum's prospects, with a 82% likelihood that ETH will close below $1,900 by Sunday night.
- As Bitcoin demonstrates consistent gains since the 2024 U.S. elections, it's clear that it meets institutional standards that Ethereum currently falls short of at this time.
