- Justin Bons criticizes BTC, ETH, XRP, BNB, and USDT over scalability, governance, and audits.
- Debate highlights permissionless vs permissioned chains and governance centralization risks.
- Bons and others see rising opportunities for alternative crypto projects to overtake incumbents.
Justin Bons: Top Tokens Built on Mediocrity
Justin Bons, founder of investment firm Cyber Capital, reignited debate this week by calling Bitcoin, Ethereum, XRP, Binance Coin, and Tether “mediocre projects” that fail to meet the crypto movement’s goals.
Posting on X, Bons argued that these leading assets remain limited by technical ceilings and centralized governance, leaving room for more open alternatives to rise.
Bitcoin and Ethereum Still Permissionless, But Stuck on Scale
Bons pointed to Bitcoin’s seven transactions per second (TPS) and Ethereum’s ~179 TPS as evidence of structural inefficiency. He acknowledged both remain permissionless chains, but claimed their governance is “centralized and captured,” unable to adapt at the pace innovation demands.
In his view, the “permissionless” label is binary, but governance dynamics require political evaluation. He stressed that BTC and ETH decision-making has concentrated among a small set of actors, which weakens their claim to decentralization.
XRP, BNB, and USDT Face Their Own Weak Points
Beyond BTC and ETH, Bons targeted XRP and Binance Coin as examples of permissioned chains, where governance structures tilt toward centralization.
On Tether’s USDT, the largest stablecoin by market cap at over $111 billion, Bons highlighted the lack of independent, regular audits, saying this raises doubts about the reserves that back it.
These weaknesses, he argued, make the top five cryptocurrencies unreliable as models for the future of digital finance.
The Trilemma Debate and Bons’ Dismissal
Bons also pushed back on the long-standing “blockchain trilemma,” which claims developers must choose between scalability, security, and decentralization. He said the problem has “already been solved” and dismissed the notion as an obstacle, likening it to dogma rather than reality.
His comments contrasted with many in the industry, including developers who still frame scalability as an unsolved challenge.
A Lifetime Opportunity for Alternatives
Bons concluded that the flaws of incumbent networks create what he called a “lifetime opportunity” for alternative projects. Responding to other users, he argued that new entrants with greater openness and stronger governance could eventually overtake Bitcoin, Ethereum, and other top assets.
For traders, the critique underscores a key theme: the market’s largest coins dominate by capitalization, but not necessarily by design strength.
Related: Ethereum’s Multi-Role Strategy Likened to Windows and Internet’s Dominance
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