ConsenSys CEO Joseph Lubin addressed the issues surrounding the use of leverage in the crypto space, along with the development of on-chain treasury structures.
Warning on Risks
Lubin noted that as firms experiment with on-chain treasury structures, it is crucial to maintain conservative risk profiles to avoid serious fallout. He discussed SharpLink, an Ethereum-focused treasury platform that currently avoids leverage entirely.
Growth of Stablecoins
Lubin emphasized the strategic role stablecoins play in the crypto ecosystem. Predominantly built on Ethereum, these digital assets are gaining global traction and are seen as important tools for expanding the influence of the U.S. dollar in the global economy. He described stablecoins as 'incredibly valuable' for financial inclusion.
Future of Digital Currencies
Despite the recent surge in crypto treasury services, major asset prices like Ethereum and Bitcoin have remained under pressure. Lubin expressed that the market is still unfolding and predicted a strong wave of long-term accumulation for digital currencies, considering them as 'the most powerful forms of money.'
Lubin's remarks highlight the importance of matching innovation with financial discipline, especially as institutional capital enters the crypto space.
