Vitalik warns that leveraged speculation is eroding the original intention of crypto and calls for a return to financial instruments that can truly increase wealth

Ethereum co-founder Vitalik Buterin recently publicly called for the crypto industry to “hit the brakes,” refocusing on financial tools that truly enhance individual sovereignty and enable long-term wealth accumulation, rather than indulging in high-leverage speculation and predatory product design. This stance has sparked widespread discussion among developers and investors in the 2026 crypto market environment.

In response to Monad community member Tom Cruise’s discussion, Buterin distinguished the fundamental difference between “open networks” and “sovereign networks.” He pointed out that openness does not equal true autonomy, and genuine sovereignty means users are not structurally exploited by governments or corporations. He specifically mentioned that the early Bitcoin community’s caution towards ICOs, alternative tokens, and highly financialized applications was essentially a resistance to systemic extraction centered on corporate interests.

Buterin believes that many current crypto products revolve around high leverage, short-term stimulation, and attention grabbing, diverging from the original goal of blockchain to “reduce trust costs and enhance individual freedom.” He straightforwardly states that the crypto industry needs more low-risk wealth accumulation tools, privacy-centric payment and social systems, and sustainable financial models that are not driven by speculation.

On a broader macro level, Buterin extends the threat of “sovereignty” from government control to corporate manipulation. He criticizes some platforms for amplifying dopamine stimulation through algorithms and abusing data collection, turning users into passive revenue sources. In his view, this mode runs counter to the spirit of crypto.

He also extends this thinking to artificial intelligence and DAO governance, advocating for the development of AI tools that amplify human capabilities rather than replace human judgment, and promoting governance mechanisms that do not rely on token weights and emphasize privacy to prevent organizations from being dominated by a few interest groups.

Buterin’s core message is very clear: if cryptocurrencies continue to be dominated by leverage speculation and corporate logic, they will lose their soul. True long-term value comes from system designs that allow users to remain independent, rational, and have the power of choice, rather than the next wave of emotion-driven wealth illusions.