Is Ethereum (ETH) A Scam?

By Bfab | Good vibes | 7 Dec 2022

While I was reading the Coinshares weekly report, I noticed some outflows on Ethereum (meaning that divestments are higher than investments ) due to some uncertainties on the unstaking of the staked ETH. So I googled it and found out that Ethereum foundation is discussing about implementing the "EIP-4844" in the "Shanghai Upgrade"... What does it mean?

1) What is the Shanghai Upgrade?

According to previous discussions, the withdrawals of the staked ETH (i.e., the standard staking, not the liquid one through Lido) would be enabled 6 to 12 months after the Merge (which occured last September), in an update named the Shanghai Upgrade. However, this estimated timeline has been removed from Ethereum website, which would mostly be due to some discussions about the implementation of the "EIP-4844" in this update.

2) What is the EIP-4844?

The EIP-4844 (which stands for Ethereum Improvement Proposal #4844) is a proposal aiming to reduce the gas fees on Ethereum layer-2 chains - e.g., Optimism, Arbitrum and ZK rollups, by implementing sharding - which already exists on other chains like Near Protocol (NEAR) or Elrond (EGLD).

3) What is the problem?

As these technical discussions take time, the Shanghai Upgrade (which will likely include the EIP-4844) might be delayed, and so ETH stakers could withdraw their ETH in years instead of months, what creates FUD - Fear, Uncertainty and Doubt, and lead some people to say ETH could be a scam.

In reality, this kind of FUD is an opportunity, for several reasons:

If things get cleared up as we can expect, ETH might rebound significantly, like it happened when the Merge date was officially announced;
In the meantime, you may buy stETH or rETH (liquid staked ETH) at lower price due to the FUD, since their prices are affected by these news;
Ethereum's competitors such as Avalanche (AVAX), Near Protocol (NEAR) or Elrond (EGLD) could benefit from this Ethereum FUD in short term.

Disclaimer: this article does not contain any financial advice. The information is provided for general informational and educational purposes only.

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