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ETF analyst faces backlash for misinformation about Ethereum

ETF analyst faces backlash for misinformation about Ethereum

GrafaGrafa2024/10/09 02:10
By:Mahathir Bayena

Bloomberg’s senior ETF analyst, Eric Balchunas, caused an uproar among Ethereum (CRYPTO:ETH) supporters after sharing what many called “misinformation” in a now-deleted post. 

On October 7, Balchunas posted an excerpt from the book *Bitcoin: Beginner’s Guide* by Benjamin Hart, which claimed that Amazon Web Services (AWS) could potentially shut down Ethereum by turning off its cloud services.

The excerpt also stated that Ethereum co-founder Vitalik Buterin could be kidnapped by a rogue state or terrorist group and forced to hand over Ether. 

These statements led to widespread criticism from the Ethereum community. 

Anthony Sassano, an Ethereum educator, responded, calling the post "absolute blatant misinformation and pretty much complete propaganda." 

He further criticised Balchunas, saying, “You should be utterly ashamed of yourself for even sharing this.”

Although it’s true that 28.4% of Ethereum nodes are hosted on AWS, according to Ethernodes, this number is not enough to bring the network offline. 

The claims in the book regarding the influence of AWS over Ethereum were heavily disputed, with many pointing out that Ethereum’s decentralised nature prevents a complete shutdown.

Consensys product manager Jimmy Ragosa also expressed his frustration, labeling the excerpt “the most propaganda-ridden paragraph ever.” 

The conversation continued on X, with fellow Bloomberg ETF analyst James Seyffart acknowledging the controversy, replying to Balchunas with, “These replies are about to be amazing hahaha.”

Ethereum developers have been working on initiatives to further decentralise the network, such as encouraging solo staking and reducing hardware requirements. 

These efforts aim to make the blockchain more resilient against any centralised disruptions.

Balchunas ultimately deleted his post, leaving only sections related to Bitcoin (CRYPTO:BTC), after the backlash from the Ethereum community.

At the time of writing, the Ethereum price was $2,451.18.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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