Today we discuss the hypocrisy surrounding Ethereum and how the Ethereum Foundation is pushing this narrative that ETH is Ultra Sound Money.
To understand this we have to look at how Ethereum began. It really starts with a (*cough…scam) I mean Premine.
It doesn’t take a genius to see that Vitalik and the rest of the original Ethereum Founders really kept a lot for themselves. Approximately 12 Million ETH for Ethereum Developers over 60 Million ETH for Ethereum Investors totalling 72 Million ETH at Launch. I won’t even begin to get into the chart that shows the perfect Premine Sale curve or the addresses that looked completely fishy when it was sold. Let's just stick to the facts…if we look at the ETH Total Supply Today it is actually Unknown….yea seriously? Best Guess is somewhere around 112 Million ETH. That's about 62% of the Current Supply was PreMined and distributed before the first ETH Block was mined. Major bummer if your holding ETH, it’s basically a security at best.
Now that we can clearly see a PreMine has taken place with over 62% of the Current Supply was PreMined and distributed before the first ETH Block was mined. We can now turn our attention to and introduce Ethereum Foundation’s own Justin Drake. That’s right Justin was paid in PreMined coin from the Ethereum Foundation to work on a meme, ya he’s kinda of a full time Meme guy for the Ethereum Foundation now but he also goes out and shills ETH to crypto youtubers and to anyone who will listen because he has like 99% of his token value in ETH. This is how Ethereum Scams, it starts at the top from the Ethereum Foundation and works its way down to no coiners and shit coiners alike. It's not like Justin had anything better to work on (*cough* ahem…ETH scaling which might I add has still doesn’t or ETH 2.0 take your pick.)
Turns out Justin is actually an amazing Full Time Meme guy, he’s really good at his new job and he has made waves in the crypto youtuber space. He really should start his own channel like Charles Hoskinson and go Full YouTuber. He just recently came out with his best work yet…it’s a meme around Ultra Sound Money. Justin proposes that EIP 1559 & the Ethereum Staking Contract (Proof of Stake) along with ETH held in DeFi (Total Value Locked as of this writing (USD) $51.38 Billion) will make ETH Ultra Sound Money because bats have sonar and now so does Ethereum? am I understanding this right?This is hilarious for a number of reasons. But I will do the quick easy version, have you heard of something called the Cantillon Effect.
The Ethereum Foundation is re-creating The Cantillon Effect on Ethereum. Issuance is inflationary on Ethereum and causes price depreciation of ETH. Justin Drake and the Ethereum Foundation understand this and reply that they will take out supply elsewhere by burning transaction fees (EIP 1559), seemingly unaware of the other ills of inflation, namely the distortion of the capital structure and Cantillon effects. Economic activity, investment, and the capital structure will be distorted to favor the source of the inflation (in Ethereum’s case that would be Proof of Stake and its holders specifically those involved with the Premine.) Have you ever been dumped on?
We actually did a whole 2 Hour Episode on this very subject recently where we go more in depth. I highly recommend you check it out, if you hold ETH and weren’t involved in the Premine you could save yourself a lot of future pain.