Leadership at the nonprofit behind Ethereum is pointing fingers after the second-most popular cryptocurrency underperformed the rest of the currently hot crypto market over the last year.
Turmoil at the Ethereum Foundation and investor criticism about its token’s future has forced Ethereum creator Vitalik Buterin to claim sole authority over the foundation’s next steps. He took to X on Tuesday to emphasize that he will oversee any leadership changes and won’t be influenced by public pressure.
In recent weeks, Ethereum investors have been increasingly complaining about what they see as the foundation’s complacency in the face of the token’s declining legitimacy. Infighting at the foundation has led one veteran developer, Eric Conner, to leave the project, writing on X, “Perhaps some day those in leadership roles will realign with the community but for now, I am out.”
While Ethereum is up 47% over the past 12 months to $3,216, its gains are dwarfed by those of competitors like Solana, which is up over 200% over the same period. This week, Ethereum is down 3% amid the controversy.
Buterin outlined his plan to improve the situation on X, saying that a process of leadership changes, including the addition of a “proper board” of directors, has been ongoing for nearly a year. However, he has dismissed calls for executive director Aya Miyaguchi to step down.
Buterin also seemingly called out other crypto-industry leaders by saying he will refuse to “start aggressively lobbying regulators and powerful political figures” and “become an arena for vested interests.” Crypto leaders for many rival tokens have closely allied themselves with newly sworn-in President Donald Trump, who has returned the favor by promising crypto-friendly regulations.
However, critics claim that the Ethereum Foundation has strayed from its initial ethos. One of its founding members, Anthony DOnofrio, lambasted the foundation in a Coindesk opinion article on Wednesday for allegedly losing its way, writing, “Despite its commitment to decentralization, it operates as a centralized entity…” He urged the foundation to hire a new leader who “understands not just the technology but its broader social, philosophical, and political implications.”
Others have criticized what they see as the foundation’s leftist politics. Bitcoin.com CEO Corbin Fraser said in a post on X that Ethereum may be lagging behind because of its “Wokie ideology,” poking fun at the foundation’s environmental and DEI initiatives.
Ethereum, originally proposed as an alternative to Bitcoin, was the first to offer smart contracts to help process complex transactions and quickly became one of the most-used blockchains. However, in recent years, other chains like Solana have gained favor with investors because of a perception of faster transaction speeds and lower fees.