Altcoins

Only 232 contributors deposited coins as fears loom for Ethereum 2.0

There were fears that Ethereum 2.0 (ETH2 or Serenity) was going to be delayed once again.

“This library is critical to creating keys, signing messages. Critical, in early phases, [means] that if you use this library, they need to be secure; if you use it to generate your wallets, it needs to have good randomness; and if you are signing your deposits which have a signature associated, it needs to be correct. Given how critical this library is, and given that, if there is a fundamental error in this library we could fck some sht up in terms of genesis deposits, that is the blocker.”

That was quoted from Danny Ryan, an Ethereum Foundation researcher, who mentioned in a podcast in the middle of October.

Luckily, the ETH2 deposit contract was lately just issued by developers. The deposit contract will expedite a transfer of Ethereum from the original blockchain to the new one.

Ethereum 2.0 Progress Update

Just last week, the Ethereum 2.0 deposit contract was released. Investors could deposit ETH in this contract, which will enable depositors to claim ETH2 on the second network once it goes live.

While there is some doubt about the exact yields depositors will get, much Ethereum deposited in the contract.

As claimed by Dune Analytics, a crypto-asset, and Ethereum-focused analytics company, 47.7k ETH has been transferred to the deposit contract over the past few days. That is 9% of the 524,000 ETH threshold needed to launch this network.

There have just been 232 contributors who have deposited coins into the contract thus far. A few have said that due to skepticism about the yields offered, and if the funds are entirely safe, retail investors hesitate to deposit. There is also the complexity of setting up a validator node for ETH2, which may be preventing further investment.

Vitalik Buterin Makes Big Deposits

One of the key participants in this contract has been Vitalik Buterin.

Analysts online noted that one of Buterin’s known addresses had deposited 3,200 ETH, meaning enough coins for 100 validators, into the contract.

In Buterin’s address, there remains $2.5 million worth of Ethereum. It is unclear if he will continue depositing those coins into the deposit contract.

Other whales are participating in the deposit contract as well, though it isn’t 100% clear who exactly these individuals are.

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