- Exec claims that Ethereum L2 has the potential to “steal users' funds.”
- Industry participants have suggested multiple signatories to eliminate single points of failure.
In a shocking disclosure, the safety of user funds has been revealed. Ethereum [ETH] L2s are not guaranteed.
According to the founder and CIO of crypto-focused Cyber Capital: Justin Bondslike L2 Arbitrum [ARB], optimism [OP],Base,Blast, stark net [STRK]ZkSync can all “steal users' funds.”
“Arbitrum, Optimism, Base, Blast, Starknet, and ZkSync all have admin keys. All the top L2s can steal all your funds right now. ”
According to VanEck, this is even more alarming. analysisthis space is predicted to reach a value of $1 trillion by 2030.
The executive likened L2's current state to legacy banking and criticized Ethereum for paying “lip service” to decentralization.
“If you think this is safe, then you should go back to traditional banking. ETH is paying lip service to decentralization, but actions speak louder than words.”
Addressing Ethereum L2 security concerns
Solana [SOL] Co-founder Anatoly Yakovenko proposed a “multisig” shared sequencer as a solution to “single administrative key.”he said,
“Each person should volunteer to be a member of the shared sequencer multisig.”
Multisig means having multiple signers to increase decentralization and transparency, and eliminate the risk of a “single control key.”
Raj Gokal, Solana's other co-founder, asked for a quick solution.
“I hope this gets resolved soon…”
But the founder and CEO of Helius Labs, the Solana developer platform, vouched for Ethereum [ETH] takes precedence over L2 Binance [BNB], cardano [ADA]or ripple [XRP].
he repeated,
“Okay, I’ll say something positive about L2. I would be even happier if they were in the top 10 instead of Cardano, XRP, or BNB. ”
When asked if Solana should also consider some L2s, a Helius Institute executive quipped:
“It might make sense in some cases.”
Recent AMBcrypto analysis An increase in transactions within L2 after the Dencun upgrade has been established and could tilt the value of ETH.
However, ETH faced significant headwinds, including SEC silence on spot ETFs and ongoing tensions in the Middle East. At the time of writing, it was barely above $3,000.
