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Vitalik warns: Institutional ETH holdings continue to expand, Ethereum will face two major threats.
On November 20, Ethereum founder Vitalik Buterin warned at the Devconnect conference in Argentina that if institutional Ethereum holdings continue to expand, Ethereum will face two major threats. The primary risk is the potential alienation of users and core developers who genuinely care about decentralization, leading to a loss within the community. The second risk is the possibility of making incorrect technical choices, where institutional pressure could drive inappropriate technical decisions, such as a 150 millisecond block time that benefits high-frequency trading but prevents regular users from running nodes, resulting in geographic centralization. Vitalik emphasized that Ethereum should focus on its characteristics of being global, permissionless, and resistant to censorship, maintaining a strong core community and adhering to the values that distinguish Ethereum from traditional finance. It is reported that currently, nine companies on Wall Street hold over $18 billion in ETH, and there are predictions that institutional holdings could exceed 10% of Ethereum's total supply.