Joseph Lubin, appeared on Bloomberg to speak about the current state of the crypto market, Ethereum’s development and competition, but ended up commenting on Ripple’s XRP and EOS not much to the likes of the investor community of both these coins.
Ripple and XRP are not real blockchain technology
Speaking to Bloomberg about the current state of the cryptocurrency market and Ethereum development, Lubin gave an interesting take on two of the industry’s biggest names which have been under the scanner because of their certain problematic features which do not completely meet the blockchain criteria. Ripple’s XRP has been marred by centralization issues as most of the coins are held by Ripple company and its founding promoters. These centralization issues are have also made it difficult for regulators whether to classify Ripple’s XRP as a security or not. On the other hand, Block.one’s EOS, is also facing similar issues of centralization as there is wealth inequality on the EOS network – the top 1.6% of token holders controlling 90% of the supply while the bottom 44% have to make do with a mere 1% of EOS. It even has a bunch of only 21 block producers which somehow makes it difficult to trust as a blockchain because its decision making is controlled by these small number of people.
Lubin, on being asked about the what would happen if “other protocols like XRP and EOS, which trade speed or decentralization for security” gain favor in the mid to long-term, replied in a very unfazed manner saying
“Ripple isn’t really a Blockchain technology, it’s sort of a payment system, so I don’t really consider that a competitor,”
Continuing his comments on EOS Lubin described the EOS as “a slightly, maybe slightly, decentralized approach at building a Blockchain system” addressing to EOS’ decision-making system, consisting of, as he put it, “twenty-one people who know one another.” He goes on the add that “EOS is an interesting technology but it’s incredibly dangerous to treat it as a layer-one technology,”
Pricing bubbles are good for the growth of the ecosystem
On being asked about current drop in prices, Lubin answered that price collapse is not a new thing to cryptos as in its nascent period of existence has already seen six bubbles each of them epic than the previous one. According to him, each of these bubbles has bought attention to the crypto ecosystem and has also bought entrepreneurs, developers, money along with the prospect of building the fundamental structure and creating more value. He believes that in a bubble scenario, it is usually trader type people that move in and out the ecosystem when prices rise and collapse but the talent that gets in to bring a fundamental change usually stays. Because of this rise and fall in prices, the crypto community is almost 2x of what it was 8 or 10 months earlier. The ecosystem is growing and at this moment what is being witnessed is the inception of layer 2 technology companies building their coins and tokens over the layer 1 which was known as the trust layer.
“I absolutely expect that there is a strong correlation between the rise in price and the growth of fundamental infrastructure in the ecosystem and the growth of development in the ecosystem. We are probably two orders of magnitude bigger as a developer community than we were eight or 10 months ago.”
Joseph Lubin has dismissed XRP and EOS and has somehow termed them as centralized systems giving Ethereum a complete edge and believes it will be significant in years to come for blockchain industry which is bound to see consolidation in some years to come.
Will we see a hit back to Lubin’s statement from EOS and XRP? DO let us know your views on the same.