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Mechanism Capital founder refutes ETH investment theory, calling it financial illiteracy.
On September 24, Mechanism Capital co-founder Andrew Kang posted on social media criticizing the Ethereum investment arguments made by certain company chairman Tom Lee, calling it a "combination of financial illiteracy arguments." Andrew Kang refuted Tom Lee's five core viewpoints on ETH investment one by one:
Stablecoins and RWA adoption: Although the value of RWA and the trading volume of stablecoins have increased by 100-1000 times since 2020, the daily transaction fees on Ethereum have actually remained at 2020 levels. Reasons include network upgrades improving efficiency and activities shifting to other blockchains.
"Digital Oil" Analogy: Andrew Kang points out that oil is a commodity, and after inflation adjustment, its price has basically fluctuated within the same range for a century. He agrees with Tom's view that Ethereum can be seen as a commodity, but this is not bullish.
Institutional Purchase Staking Theory: Andrew Kang stated that large banks and financial institutions have neither purchased ETH nor announced related plans.
Valuation equivalent to financial infrastructure companies: Andrew Kang stated that this view is a fundamental misunderstanding of value accumulation and pure delusion.
Technical Analysis: Andrew Kang believes that Tom Lee uses technical analysis to draw arbitrary lines to support his argument, while in fact the technical outlook for Ethereum is bearish.