They set out to upend the established money system and monetary supply through central banks. But the success of its authors has also fostered resentment. Wunderkind Vitalik Buterin lashes out.
The tweet by programming «wunderkind» and co-inventor of «cryptofuel» Ether Vitalik Buterin is the result of an increasingly tense mood in the cryptocurrency scene: «Stop being a fraud, please. You are not Satoshi».
@ProfFaustus stop being a fraud, please. You're not Satoshi. That said, your tweets make a great living argument for the #no280 movement.
— Vitalik Buterin (@VitalikButerin) 7. Oktober 2017
Crypto experts will have an opinion, while finews.com may be asking themselves who or what Professor Faust, Satoshi and #no280 are. @ProfFaustus is the Twitter identity of Craig Steven Wright, an Australian entrepreneur and polymath. And Satoshi, Satoshi Nakamoto, is the pseudonym of the inventor of the original cryptocurrency Bitcoin, whose identity has long been shielded.
Wright emerged from this shadowy world roughly two years ago through an item in «Wired,» which claimed that he was Satoshi Nakamoto.
Polarizing Cult Figure
The 47-year-old Wright (pictured below) demurred at first, then claimed to be Satoshi Nakamoto by delivering proof of the virtual identity of the Bitcoin inventor and developer. Since then, Wright has advanced to something or a cult figure for Bitcoin afficianados.
Just not everyone: Wright has rankled many in the Bitcoin community for presenting himself as the sole inventor of the cryptocurrency, as well as repeatedly attempting to patent Bitcoin-related ideas.
Fraud or Genius?
Others have cast doubt on evidence provided by the man who claims to be behind the pseudonym Satoshi Nakamoto. Last year, Wright supplied what he claimed was cryptographic evidence: codes of the first Bitcoin and a debut transaction.
He was quick to garner accusations of fraud by some who said that Wright had merely provided a copy of a Bitcoin transaction carried out by Satoshi Nakamoto in 2009. Wright responded like an unappreciated genius and has since declined to provide further evidence that he is Satoshi Nakamoto, though he continues to claim to be.
Pseudonym Gone Silent
Before Wright was outed, there were several attempts to decipher Satoshi Nakamoto's identity – which the inventor poked fun at. The pseudonym has gone silent since Wright has claimed Nakamoto's identity.
For writer-turned-programmer Buterin, the Australian with several PhDs and university diplomas is no icon. The Russian-Canadian followed Bitcoin intensely for several years as a journalist.
Crypto Criticizes
When his call to further develop Bitcoin fell on deaf ears, Buterin and associates founded the Ethereum Foundation, an open blockchain platform for industrial applications with Ether as the currency.
For Buterin, who recently moved from Switzerland to Singapore and enjoys worldwide renown, to finger the apparent inventor of Bitcoin, Wright, as a «fraud» is emblematic of the rattled nerves in the cryptocurrency scene.
The fledgling industry's trust and credibility has been battered after regulators from China to the U.S. announced bans or additional controls on token fund-raisings following billions in so-called ICOs, or initial coin offerings. Prominent bankers like Jamie Dimon and finance veterans like Howard Marks have slammed the wave of new cryptocurrencies as frauds or Ponzi schemes.
ICO Glut
Startups raise money by issuing tokens for their own cryptocurrency, but several thousand different currencies already exist. Authorities have warned that this type of fundraising is fertile ground for fraud.
Buterin's Ethereum Foundation is at the center of the ICO rush: the coin offerings are carried out on the public Ethereum network. The programmer is angry about the glut of «dumb» ICOs that have used his name for opaque dealings, according to several of his tweets.
«Net Harm»
Buterin's tirade comes against the backdrop of several high-profile ICO scams, highly volatile cryptocurrency values as well as people of dubious repute. Cryptocurrencies will require deep-rooted public trust to reach their goal of establishing themselves as an alternative payment method. Instead, recent developments have undoubtedly damaged the movement, slowing advances and drawing the wrong sort of attention – that of regulators and authorities.
Wright became Satoshi for fame and glory, maintains Buterin. «He's a net harm, definitely to the bitcoin community and wider crypto community, and probably to big blockerdom as well.»
Unlike Satoshi Nakamoto, Craig Wright is a tangible person who is peddling various bitcoin-related projects through his firm, Nchain. For readers who want to see Wright live, he will speak in Zurich on Oktober 24 at an event hosted by the Bitcoin Association Switzerland.
