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Jack Dorsey's Ethereum Security Contention
Jack Dorsey, a well-known Bitcoin proponent, has sparked a heated Twitter debate with numerous cryptocurrency industry figures after affirming in response to a query that Ether could be classified as a security.
Bitcoin Ordinals developer at Taproot Wizards, Udi Wertheimer, took note of this comment and indirectly called Dorsey a "buffoon" in a tweet posted on June 6.
In a retaliatory tweet, Dorsey challenged Wertheimer with, "ETH isn't a security? Enlighten me, oh wise one." In response, Wertheimer posted a five-year-old video of Gary Gensler, the Chairman of the United States Securities Exchange Commission, declaring that Ether had achieved sufficient decentralization and was therefore not a security.
Revisiting Ethereum's Security Status
However, Gabor Gurbacs, a strategic advisor to stablecoin provider Tether and investment management firm VanEck, entered the debate. He suggested that Ethereum's recent shift to proof-of-stake might have reawakened considerations around securities laws.
This cyber row comes as the SEC initiated legal action against crypto exchanges Binance and Coinbase on June 5 and 6, respectively, for supposedly offering tokens classified as unregistered securities.
Dorsey's Stance on Altcoins
Dorsey demonstrated agreement with a 2015 post by Coinbase CEO Brian Armstrong, in which Armstrong dismissed altcoins as a "diversion," suggesting that the company should primarily concentrate on Bitcoin.
In a series of pro-Bitcoin tweets, Dorsey further shared a video of Jack Mallers, CEO of Bitcoin Lightning application Strike, criticizing Armstrong for favoring altcoins over development on Bitcoin and the Lightning Network.
Dorsey's History with Ethereum
While he was at the helm of Twitter in 2021, the company sold 140 Ethereum-based non-fungible tokens (NFTs), but Dorsey declined to invest in Ether personally.
Further, Dorsey had earlier questioned Ethereum's developmental potential in August 2021 when he suggested that Ethereum, in isolation, wouldn't pose a significant threat to big tech.
Recently, Dorsey has offered financial backing and public support to Nostr, a decentralized network known as the "Twitter killer," which incorporates Bitcoin Lightning-based payments on the "Damus" platform.
