Why overleverage Is Trending Today?

Vitalik Buterin, the co-founder of Ethereum, has expressed support for corporations holding Ethereum (ETH) as a reserve asset. However, he cautioned against the risks of overleverage, warning that excessive borrowing could lead to a liquidity crisis. Buterin advised companies to maintain a balance between leveraging ETH for growth and ensuring they have sufficient liquidity to manage market fluctuations.

Ethereum co-founder Vitalik Buterin has expressed concern about the rapid growth of Ethereum's treasury reserves, warning that it could lead to an "overleveraged game" despite the potential benefits. Buterin supports the idea of corporate Ethereum treasuries but cautions that excessive leverage could pose significant risks.