Vitalik: ETH is a valuable social practice as a treasury asset for enterprises.

In an interview, Vitalik shared his views on Ethereum (ETH) as a corporate treasury asset. He believes that this practice in itself is a valuable social practice.

Vitalik emphasized the importance of providing multiple channels for people to access ETH. He explained that this might be the reason why some people prefer to buy stocks of treasury companies that hold ETH rather than directly purchasing ETH. He believes that offering more choices is beneficial. Everyone's financial situation is different, and the requirements, incentives, or restrictions for participation also vary. Therefore, this diversification of options indeed provides many valuable services.

When asked about his views on the future, Vitalik stated that if three years from now someone told him that the treasury mechanism led to the collapse of ETH, his first reaction would be: these mechanisms may have evolved into an overly leveraged game. He described a possible scenario: a 30% price drop could trigger forced liquidations, leading to larger declines, ultimately resulting in crashes of 50%, 70%, or even 90%, accompanied by a collapse of trust.

However, Vitalik expressed confidence in the Ethereum community. He believes that most community members, including those working in finance, are responsible. They are different from certain controversial figures in the cryptocurrency space. Vitalik believes that as long as leverage does not get out of control and does not fall into a vicious cycle, ETH derivatives themselves are a sound and reasonable existence.

Overall, Vitalik believes that this development is positive for participants in the Ethereum ecosystem.