During a Thursday interview with Bloomberg, Consensys CEO Joseph Lubin issued a warning about cryptocurrency treasury companies, claiming that things could get “ugly” if there is too much leverage.
“It could get really ugly if you don’t maintain prudent risk levels,” Luban said.
The Consensys boss has stressed that SharpLink, the new Ethereum treasury company, is not leveraged, but he did not rule out bringing a bit of leverage in the future.
Over the past few months, there has been a Cambrian explosion of various cryptocurrency treasury companies. However, prices have remained mostly stagnant despite this corporate adoption boom.
Lubin has stated that there are various factors influencing the prices of cryptocurrency tokens.
“We’re gonna see an amazing amount of accumulation in Ethereum and Bitcoin,” Lubin said.
Treasury companies will be able to raise Bitcoin and Ether to the status of “highest powered money,” according to Lubin.
Stablecoins will strengthen the dollar
When it comes to stablecoins, Lubin is convinced that they are already entering the mainstream.
Lubin claims that Consensys is “really excited” about the fact that most stablecoin projects are based on Ethereum.
“Stablecoins are incredibly valuable for people around the world,” Lubin stressed.
They also provide an opportunity for US companies to strengthen the U.S. dollar.