8 months ago
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Emin Gün Sirer, the founder and CEO of Ava Labs, has issued a stark warning about the proliferation of subpar layer-2 (L2) solutions in the crypto space.
In a series of tweets, Gün Sirer expressed concern over the tendency within the crypto community to overlook red flags in favor of individuals (i.e., disgraced FTX founder Sam Bankman-Fried) who initially appear successful.
Hey y'all,
We all ignored the huge red flags associated with SBF because "he looked smart" and "he made a lot of money." Then it turned out that he was dumb as rocks, was a sociopath, and was just stealing our money.
The next cycle is going to be even more noisy, with even…
Many L2 platforms utilize centralized sequencers without fraud proofs, echoing manipulative tactics seen with some of Bankman-Fried’s ventures.
“The next cycle is going to be even more noisy, with even worse behavior. It has become really easy to launch a trash L2, and it’s fairly easy to do that trick, perfected by a certain chain that reorgs every other day, where you find someone who is actually doing real work and you parrot what they say, while angling for a photo op with [Ethereum founder Vitalik Buterin],” Gün Sirer said.
Inferior L2 solutions can be launched with ease, often employing deceptive practices such as selling tokens pre-launch or manipulating token valuations, he warned. Therefore, it’s important to identify critical red flags associated with these “trash L2s” — discrepancies between project narratives and technological capabilities, token dumping by founders, and overly restrictive token supply tactics.
To navigate through the noise in the crypto market, Gün Sirer proposed a simple litmus test: whether a project addresses significant obstacles facing the industry and offers genuinely innovative solutions. He urged vigilance and critical thinking to prevent the emergence of new bad actors in the wake of Bankman-Fried’s downfall.
Reacting to Gün Sirer’s remarks, Robert Sasu, a core developer at MultiversX, underscored the importance of decentralization, security, and proper design in blockchain projects.
Decentralisation, security and correct construction by design matters. A lot of L2s miss most of these points. I can agree with your worlds, but don’t forget other ecosystem who scale at least as much if not more: like MultiversX.
In case of blockchain let’s not forget that…
He acknowledged Gün Sirer’s points while promoting MultiversX as a platform that prioritizes these essential principles.
Meanwhile, another X user with the handle @nextalphaa countered Gün Sirer’s critique of Ethereum (ETH) L2 solutions, arguing that the permissionless nature of Ethereum allows for diverse projects to emerge. He encouraged following the journey towards maximum decentralization and transparency in the L2 space.
several good points abou alt-L1 charachters but trashing Ethereum L2s as a concept is pure cope on you part 🍿😂
on a permissionless network like Ethereum anyone can launch anything which cannot be a surprise for you right?
and hey, follow the L2 journey towards max…
Gün Sirer’s cautionary words serve as a reminder of the ongoing challenges facing the crypto industry and the need for greater scrutiny and discernment in evaluating new projects and initiatives. As the community navigates through these complexities, maintaining trust and integrity remains paramount.
