Nic Carter rejects Bitcoin maximalism, embraces Ethereum
Sparked by outrage from Bitcoin maximalists on Twitter, one of Bitcoin’s most prominent voices, Nic Carter, has severed his Bitcoin-only ties. This week, the venture capitalist hosted a three-hour Twitter Spaces and blogged 3,800 words affirming his belief in a multi-coin future.
Bitcoin maximalists believe that most blockchain applications can be implemented on Bitcoin without the need for an altcoin and that the primary outcome of altcoin issuances has been insider enrichment.
Indeed, promoters of ICOs, IDOs, IEOs, NFTs, and other altcoins disproportionately benefit at the expense of retail investors. With few exceptions, most altcoins have lost nearly all of their value.
Two chairmen of the SEC have opined that “most crypto tokens are investment contracts” that failed to register and disclose risks to investors. Unanimously, both chairmen agree that “every ICO I have seen is a security.” There are millions of such ICOs and altcoins.
Read more: Just 5% of NFT traders make the vast majority of profits on marketplace OpenSea
What triggered the Bitcoin maxis?
In particular, Carter sparked controversy after he broadcast a Solana- and Ethereum-friendly investment called Dynamic. His private equity fund, Castle Island Ventures, co-invested in a syndicate alongside Andreessen Horowitz (a16z) and Solana Ventures. Dynamic raised $7.5 million from the syndicate.
Carter’s new shill sells a developer tool for password-less, crypto wallet-based authentication. The company charges for a service and does not have its own token nor ICO. It merely allows website logins through common Ethereum and Solana services like Metamask.
Carter is one of four general partners for Castle Island Ventures. He mostly invests in the equity of early-stage startups. Indeed, on Twitter Spaces, he clarified that most of his firm’s portfolio gains have come from equity, not altcoins.
Nevertheless, Bitcoin maximalists were upset, believing Carter was a member of the Bitcoin-only community. For years, Carter had been a prominent voice for Bitcoin.
Instead, Carter sneered at their beefsteak community meals, “laser eyes to $100K” profile pictures, and belief in PlanB’s discredited stock-to-flow (S2F) model.
Read more: What’s PlanC? Bitcoin investor PlanB’s stock-to-flow price model has failed
Three hours of ‘Nic Carter vs the plebs’
Late on Tuesday night, as Bitcoin maximalists posted hundreds of tweets directed at Carter, he opened up a social audio room on Twitter Spaces entitled “Nic Carter vs the plebs.” Pleb is shorthand for plebian, a common Bitcoin term for non-elite members of the community.
Bitcoin maximalist Jimmy Song criticized Carter’s embrace of altcoins. Song denounced Carter’s understanding of decentralization. In addition, he argued Carter was wrong about NFTs and DeFi.
Additionally, Samson Mow of Blockstream and JAN3 criticized his move. “Not something to be proud of,” Mow replied to Carter’s altcoin-friendly investment.
Carter blocked several people on Twitter out of frustration. However, he maintained lines of communication with prominent Bitcoiners. Dozens of Twitter threads evidence Carter’s willingness to continue engaging with his critics going forward.
In summary, Carter has resoundingly clarified that he is not a Bitcoin maximalist. Categorically, in his words, he never was and never will be. Carter has been a “pluralist when it comes to blockchains.” He reiterated that he believes in the long-term viability of Ethereum, NFTs, and stablecoins, among other altcoins.
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