Ethereum’s Dark Secret: JPMorgan’s Lucrative Stake in MetaMask and Infura – 257

This is going to be an interesting topic Because it's two pieces right and I Think you'll see why one thing is Happening because of what happened prior To that There is a consensus lawsuit revealing That JP Morgan owns critical ethereum Infrastructure a group of 35 Shareholders of ethereum giant consensus AG have filed for a special audit of a 2020 deal that saw JP Morgan Chase Acquire in an influential stake in two Of its Flagship products the former Employees who represent more than half Of all CAG holders want an investigation Into the matter which allegedly saw Quote fundamental intellectual property In subsidiaries illegally transferred From CAG into a new entity consensus Software Incorporated this was in Exchange for a 10 stake in the new Entity and a 39 Million Dollar Loan By Consensus Chief and ethereum billionaire Joseph Lubin according to a press Release issued Wednesday the deal known Within KAG as project North Star Resulted in financial institutions JP Morgan winning a significant slice in The company's lucrative intellectual Property specifically metamask in Infuria both crypto wallet metamask and Node Network inferior persist as Arguably the ethereum ecosystem's most Critical infrastructure turns out Wall

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Street Fat Cats JP Morgan directly Profits from and even controls that Infrastructure not exactly what Satoshi Nakamoto envisioned when he embedded Chancellor on brink of second bailout For banks and bitcoin's Genesis block of Course and we're talking about ethereum Here we're not talking about Bitcoin I Don't think that there's ever been a Question that ethereum's fundamentals do Not align with Bitcoin never have and Never will and all it really appears to End up being turned into is some sort of Huge money laundering scheme that's been Going on between I mean put on the Tinfoil hat right between large exchange Owners large traditional financial Institutions and governments I mean it Is what it is indeed project Northstar Has proven incredibly lucrative for CSI Shareholders like JP Morgan a year after The transaction the IP in question was Used to raise funds for CSI at a Valuation of 3 billion US Dollars after A current round the consensus spin-off CSI is expected to hit 7 billion dollars Original CAG insiders reckoned the deal Was quote to to the detriment of the Minority shareholders of CAG and to the Benefit of Joseph Joseph Lubin Personally end quote ethereum co-founder Lubin is the majority shareholder of CAG And CSI Forbes values lubin's Fortune Between 1 and 5 billion US Dollars the

Former consensus employees are invoking An article of the Swiss code of Obligations which if successful May Render the deal void at the time of Transaction both Lubin and board member Frith Joff Uh weinert there we go were directors of Both CAG and CSI unfortunately under Swiss and U.S law dual representation in This situation like this is not allowed The shareholders are also flagging the Fact that required annual shareholder Meetings had to be delayed by two years Meaning that they had no idea the Illegal deal had ever happened Because these meetings never took place Fine Art and supposedly or was Supposedly never officially re-elected To the company's board and so was in no Position to authorize project North Star In lieu of these shareholder meetings Lubin hosted an informal informational Event in late 2021 at which CAG staff Were informed their numbers would be Slashed from 160 to 30 by the end of the Year This coupled with the movement of Lucrative Assets metamaskin in fira from CAG the CSI Mente de facto liquidation Fcag without the required consent of a Shareholder meeting according to the Shareholders press release this was Plaintiff say in breach of the Director's duty to act in the company's

Interests considering it left Shareholders holding equity in a company That didn't actually own that much the Shareholders asked asked anybody who Holds or was promised CAG shares to Contact them vowed to quote help all Those who have been harmed end quote and Said they're ready for upcoming Court Battles for what it's worth a consensus Mesh CAG spokesperson told coindesk the Company refutes the details the Shareholders press release saying quote The business fundamentals and operating Environment are entirely different today Than at the time of the transaction Though the group would like to apply a Valuation chin that might be achieved Today to a set of projects that were Pre-monetization during the darkest days Of covid when the transaction took place They also said I mean isn't it funny That it's always like let's just always Use Covetous and as an excuse we did Something that is Ethically questionable but that was During covid and it was pre-monetization Don't worry about it you know it's fine They also said CAG was prepared to Immediately file further actions once a Swiss auditor responded to the case That is pretty funny and if you want to Throw on a huge old tinfoil hat back That up with this so we have a bunch of Craziness happening here where we have

Large shareholders like JP Morgan owning A bunch of the infrastructure for Ethereum today's sponsor is BT miners BT Miners has been a long time sponsor of The channel and a proven reliable source For Asic miners if you're looking to Purchase Asics Hardware from Bitcoin to Dogecoin miners they are available for Purchase on Bt-liners.com BT miners is a trusted Source by both asiccminervalue.com and Cryptominer.com follow the affiliate Link in the description and tell them so Sent you to support the channel and then You pop into the very next article today Just released ethereum developers are Considering raising the max validator Limit from 32 to 2048 ethereum This is nutty guys ethereum's core Developers are considering your proposal That suggests raising the maximum Validator balance from the current 32e3 To 2048 ether per validator this Proposal Concerns an increase in the maximum Validator stake while the minimum would Remain at 32 so don't worry if you can Only afford 32 you're going to still be Able to do 32. Here's where things get interesting Though Right it gets interesting It gets interesting when we start Talking about decentralization of the

Network itself right and thanks for the Super Chat Theodore As it stands ethereum validators are Subject to an effective balance cap set At both the minimum and maximum of 32 Each this forces large-scale staking Operations to spin up multiple Validators if they want to earn yield on Any amount greater than this of course What that means is the more validators The more robust the network meaning more Decentralization even though it's Technically controlled by large Individuals right large validators like It it still helps with the actual Network decentralization so You have more robust infrastructure Right if you allow people to move that Up you have less robust infrastructure Um that being said unsurprisingly this Practice has led to a big increase in The number of validators there are Currently 600 000 active validators an Additional 90 000 awaiting activation in The queue Michael neuter and ethereum Foundation researcher and key proponent Of the proposed change made the case for This increase during the most recent Ethereum core developer consensus Meeting held Friday he said that while The current validator cap promotes Decentralization it inadvertently leads To an inflation of the validator set Size

Neuter I I feel like that's probably not Pronounced correctly Explain that raising the cap would slow Down the expansion of the activated Active validator set ultimately Improving the Network's efficiency in Terms of achieving finality within a Single ethereum slot Um I believed they do they yeah so That's not linked here Yeah because that finality failed well That's a different that's a different Term of finality than what they linked That article to okay the proposed Increased cap will also introduce the Possibility of Auto compounding Validator rewards according to neuter Should I say Nader That sounds wrong too at the present uh Rewards earned beyond the 32 East cap Must be redirected elsewhere to generate Staking yield if the cap were to be Lifted and raised these rewards could Immediately be compounded providing Validators with an effective means to Earn more from their eth or from their Staked eth moreover the proposed claims To address the operational concerns of Larger node operators including Exchanges like coinbase which currently Maintain tens of thousands of validators Due to the existing 32 eth cap per Validator raising the maximum effective Validator balance would allow such

Operators to manage fewer but higher Stake validators which could potentially Translate into less complexity He did warn however of the associated Risks including potentially higher Penalties for accidental double Attestations or proposals also known as Slashing which we talked about as a Problem imagine you have your eth staked In like Lido or coinbase or something Like that and then they get in trouble With slashing it's gonna be pretty Terrible This proposal continues to be under Debate among the core developers who Have agreed to further discuss the Implementation details of this proposal On social platforms such as eth Magicians and Discord what it sounds Like to me at the end of the day is Really ethereum is struggling to scale Right and we've known this for a long Time I I think with What was supposed to be coming with Sharding which is still not here right Was that and what was supposed to come Along with the move to proof of stake Was a scalability and a reduction of Fees neither of which have actually Happened the only thing that's really Happened is that we have seen a Consolidation of the participants into a Few of the very rich and less Participation within the community from

The minor perspective and we're seeing Less centralization or less Decentralization as well or more Centralization however you want to frame That It's really ethereum has been extremely Disappointing to me For quite some time But it is kind of the de facto go-to for D5 still right because uh it's it's Almost like somebody starts drinking Coca-Cola never switches to Pepsi right It just is the way it is Um even though there could be better Solutions out there there are even proof Of work Solutions out there that are Arguably better but the the thing is is Everybody's accustomed to the current Status quo with uniswap Etc We'll have to see if that continues Though right Giants have fallen in the Past Thanks for checking out this clip from The crypto mining show you can check out The full episode here or more crypto Content down here also I'd like you to Check out my locals page at son of a Tech.locals.com where you can become a Member for free or choose to be a five Dollar a month supporter that unlocks Additional content

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