Co-founder of Avalanche blockchain, Emin Gün Sirer, has raised an alert on the infiltration of certain layer-2 solutions, which poses risks to investors. In an X post on March 23, the Ava Labs boss expressed concerns over these “trash” projects while educating users on several of their common characteristics.
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The Simple Authenticity Test By Emin Gün Sirer
In addition to the red flags mentioned above, Emin Gün Sirer also proposed a simple test that could help investors in screening through the masses of L2 projects being launched daily for authentic, profitable ventures.
Firstly, the Ava Labs founder suggested identifying the main issues – known as “blockers” – in the crypto space at any time. He stated that, for example, issues such as scalability and performance were quite significant until blockchains such as Avalanche and Solana emerged with solutions.
Emin Gün Sirer believes that supporting multiple use cases on the same platform as well as integration with traditional finance (TradFi) are currently critical issues facing the crypto ecosystem. Before investing in an L2 solution, the Avalanche co-founder advises users to assess where the project offers a genuine solution to these challenges.
Total crypto market valued at $2.368 trillion on the daily chart | Source: TOTAL chart on Tradingview.com
Featured image from Forbes, chart from Tradingview
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Author: Semilore Faleti
