Ethereum co-founder Vitalik Buterin told CNBC in a Cannes that institutional investors are choosing Ethereum for its stability and reliability, not because of “scalability” or “speed.”
“Many agencies have said directly that they prefer Ethereum because it is stable, reliable and does not crash,” Buterin said.
According to Buterin, the fact that Ethereum has not experienced a second of downtime in its 10-year history is a huge source of confidence for institutional investors. In his opening speech at the ETHCC event in Paris, Butalin discussed the direction of future development of the Ethereum network and the “value tests” he encountered during this period to accelerate institutional adoption. Noting that the agency is particularly focused on issues such as future “privacy”, Buterin said these issues are far more important than the system’s technical infrastructure.
Tomasz Stańczak, the new co-executive director of the Ethereum Foundation, also supported this view, saying these core values are the reasons why the institutions choose ETH.
Stańczak also pointed out that when institutions send orders to the market, they expect their transactions to be executed fairly on time, and without errors, without discrimination. As Stablecoins and tokenized assets become more and more mainstream, the importance of such deterministic assurance is also increasing.
*This is not investment advice.
