Security is not a game

Euphoria impacts on reward circuit and endorphins can cloud one’s judgement: all time high mood music tends to obscure the obvious. The social media provocative behaviour of a minority is bound to provoke envy, and bring out the worst in people. A distressing incident occurred recently when the cofounder of a crypto security firm and his partner were abducted near their residence by criminals demanding a ransom in cryptocurrency. The situation was reminiscent of a modern day Sergio Leon or John Ford movie, unfortunately it was in real life and Vincent Cassel was not the lead character. 

The circumstances escalated alarmingly, resulting in a severe injury to David Balland. Fortunately, thanks to a fantastic coordination between experts and law enforcement agencies both David and his wife were eventually released, albeit separately, with his wife being found at a considerable distance. David has since shown remarkable resilience, even making light-hearted remarks about the ordeal on social media (removed at time of writing). Some will call it French Panache. While this outcome is a relief, it should not diminish the gravity of the situation.

Implications for cryptocurrency holders

This incident highlights the potential risks associated with cryptocurrency holdings, even in developed nations. It serves as a stark reminder that as cryptocurrencies become more mainstream, discretion regarding one’s holdings is paramount. This issue is not isolated to one country; a public repository has documented physical attacks against cryptocurrency users globally from 2014 to 2022. The list is alarmingly long and that’s just the reported ones. 

While robbery has always been a concern throughout history, wealthy individuals, including cryptocurrency holders, may be particularly vulnerable. Perception is modern age reality. This incident underscores the importance of prioritising security as an engineering concern rather than a lifestyle choice. It raises questions about the viability of self-custody for cryptocurrencies and suggests that investment through structured products, like the one we have offered since 2016, may provide enhanced convenience but also security. I am not advocating for one against another. I am simply convinced that both approaches are complementary and part of the wealth preservation process rather than some form of obscure dogmatism. 

In conclusion, as the cryptocurrency landscape evolves, it is crucial to balance enthusiasm with prudence, ensuring that personal safety is not compromised. Individual security is not a lifestyle choice. 

With Ethereum, patience is the price to pay for true decentralisation

Revisiting the recent discourse on Ethereum’s trajectory and governance, it’s worth noting that the token’s price performance has been underwhelming, causing widespread discontent. From a pure trading perspective, the asset trades badly and justify our decision to programmatically convert our staking proceeds into Bitcoin. However, since 2018, H1 has been on average a good season for Ethereum compared to H2. $3,000 could well be the perfect launchpad. Something to keep an eye on.

The crux of Ethereum’s predicament lies predominantly within its Layer-2 ecosystem. This burgeoning Layer-2 landscape is generating substantial profits for its founders and participants. However, these networks appear to be remiss in their contributions back to their progenitor. In other words, they are young adults with good jobs living rent free with their parents: a burden both emotionally and physically some will say. 

In this regard, Ethereum seems to be treading a path akin to Cosmos, another blockchain network whose value has been diluted by its auxiliary chains, resulting in lacklustre price action for the native token amidst a thriving market.

Leadership quandary

One might contend that the blockchain currently requires more of an executive than a philosopher. Does this imply Ethereum is under threat? I think not. 

Whilst there are intriguing newcomers in the space, a retrospective view of Ethereum’s accomplishments—encompassing staking, restaking, and the forthcoming Pectra fork—reveals substantial progress. Achieving such milestones within a genuinely decentralised ecosystem is no mean feat. Significant developments invariably require time. However, one needs to concede that the Solana foundation led by Lily Liu is doing a much better job in terms of thought leadership supported by legacy investors like Multicoin and Kyle Samanis. Once upon time, Ethereum had this vibe thanks to Consensys and Joe Lubin. Action speaks better than a thousand words. To that extent, investments from President Trump affiliate entity World Liberty Financials or potential investments from Trump Media & Technology Group Corp might spark a new flame, making Ethereum one of the de facto designated American (Vitaliik Canadian passport will disagree) champions.