PlanB’s Critique of Ethereum: Centralisation and Pre-Mining Concerns

PlanB criticises Ethereum as “centralised” and “pre-mined”, highlighting recent declines in its price and market dominance. He raises concerns about its transition to Proof of Stake (PoS) and the issues stemming from pre-mining, while Ethereum continues to show strong performance in stablecoin transactions and real-world asset tokenisation. The network’s evolution raises broader questions about decentralisation in the cryptocurrency space.

Bitcoin analyst PlanB has sharply critiqued Ethereum (ETH), labelling it as “centralised” and “pre-mined.” His comments come in light of Ethereum’s market position deteriorating significantly since early 2025, with both its price and dominance falling. PlanB’s criticism includes Ethereum’s transition from Proof of Work (PoW) to Proof of Stake (PoS), discussing tokenomics as a core issue within the platform’s structure.

Referencing a statement by Ethereum co-founder Vitalik Buterin from 2022, where Buterin critiqued the Stock-to-Flow model, PlanB highlighted that Ethereum’s ETH/BTC trading pair has reached a nine-year low, underlining his claims of intrinsic flaws. He labelled Ethereum as a “shitcoin,” asserting its centralisation due to pre-mined assets and the PoS mechanism, which he argues centralises transaction validation among large holders.

A primary concern for PlanB is the pre-mining of ETH; early on, over 72 million of the total 120 million ETH were pre-mined, amounting to around 60% of its supply. This disproportionate allocation to developers and early investors potentially consolidates control and influences, which is particularly concerning under a PoS framework.

Despite the criticisms directed by PlanB, Ethereum remains pivotal in various real-world applications. Analyst Danny Marques noted that in 2024, Ethereum’s stablecoin transactions surpassed Visa’s, achieving over $14 trillion in transactions compared to Visa’s $13 trillion. Furthermore, Ethereum accounts for over half of the total stablecoin supply, reinforcing its significance in global finance.

Ethereum is also leading in the tokenisation of real-world assets (RWAs), with over 56% of total RWA value. This integration with traditional finance suggests that while criticism continues, Ethereum’s relevance in blockchain is profound, bolstered by ongoing developments.

Proponents of Ethereum argue that the network is becoming less centralised, pointing to potential centralisation threats facing Bitcoin due to institutional ownership and Bitcoin’s diminishing mining rewards. Vitalik Buterin’s recent proposal for a significant upgrade to the Ethereum Virtual Machine (EVM) aims to enhance Ethereum’s smart contract scalability and performance while ensuring backwards compatibility.

PlanB’s rigorous critique underscores the continuing discourse on Ethereum’s decentralisation and the implications of its PoS mechanism. While concerns over pre-mined supply persist, Ethereum’s growing adoption for stablecoin use and RWA tokenisation indicates its enduring place in the blockchain domain. Future upgrades will likely maintain Ethereum as a central topic of discussion and scrutiny in the cryptocurrency sector.