Vitalik Buterin, the co-founder of #Ethereum, has voiced his support for the emerging trend of public companies adding Ether (ETH) to their corporate treasuries. He sees this development as a positive step for the Ethereum ecosystem, primarily because it provides a wider range of investors with access to the token. By offering shares in these "ETH treasury companies," people with different financial circumstances can gain exposure to Ethereum without having to directly hold the cryptocurrency themselves. This effectively broadens the investor base and could lead to greater institutional adoption and credibility for Ethereum. 🚨 However, Buterin's endorsement is not without a significant caveat. He has issued a stern warning against the risks of excessive leveraging. Buterin's concern is that if these treasury companies borrow heavily against their ETH holdings, a sharp downturn in the market could trigger a cascade of forced liquidations. This would create a negative feedback loop, where falling prices lead to liquidations, which in turn push prices down even further, potentially causing a catastrophic market collapse. Buterin explicitly drew a parallel to the 2022 collapse of the Terra blockchain, which was fueled by similar over-leveraged positions. He stated that if Ethereum were to face a similar downfall, his guess for the reason would be that it had been turned into "an overleveraged game." While he expresses confidence in the discipline of current $ETH investors, he remains cautious about the potential for this trend to devolve into reckless risk-taking. I have written a longer piece why I think these treasuries are a bad idea Link to my post