Crypto Treasury Firms Could Face “Ugly” Risks, Warns Consensys CEO
Joseph Lubin, the head of Consensys, didn’t mince words in a recent Bloomberg interview. He’s worried about cryptocurrency treasury companies—especially if they lean too hard on leverage. “Things could get really ugly,” he said, “if risk levels aren’t kept in check.”
It’s not just hypothetical. Over the last few months, a flood of these treasury firms has entered the crypto space. But oddly enough, token prices haven’t budged much, even with all the corporate interest. Lubin thinks there’s more at play here—maybe too many moving parts to pin it on one trend.
Leverage: A Double-Edged Sword?
SharpLink, Consensys’ own Ethereum treasury venture, isn’t using leverage—at least not yet. Lubin left the door open for that possibility down the line, though. But he’s cautious. Too much borrowing, too much risk? That’s when things could spiral.
He didn’t name names, but the warning feels timely. The crypto market’s no stranger to wild swings, and adding heavy leverage into the mix might just amplify the chaos. Still, Lubin seems optimistic about the bigger picture. Ethereum and Bitcoin, he thinks, are poised for “an amazing amount of accumulation.” Eventually, treasury firms could help lift them to what he calls “highest powered money.” Whatever that means exactly—he didn’t elaborate.
Stablecoins: Quietly Going Mainstream
Lubin’s also betting big on stablecoins. He’s convinced they’re already breaking into everyday finance, even if most people haven’t noticed yet. “They’re incredibly valuable for people worldwide,” he said, especially in places where local currencies are shaky.
And here’s a twist: Lubin believes stablecoins might actually give the U.S. dollar a boost. Most of them are tied to the dollar anyway, and since so many run on Ethereum, that’s a win for Consensys too. “We’re really excited about that,” he admitted—a rare moment of enthusiasm in an otherwise measured interview.
But the takeaway? Crypto’s still a gamble, especially when leverage gets involved. And if treasury firms aren’t careful, the fallout could be worse than anyone expects. Lubin’s not sounding the alarm yet—but he’s definitely keeping one hand near it.
