Mechanism Partner's Long Form Rebuttal to Tom Lee: The Bullish Case for ETH is "Ridiculous" and the Most Egregious Example of Recent Financial Illiteracy

BlockBeats News, September 24th, Mechanism Capital partner Andrew Kang made a post on social media bluntly stating that the current ETH bull leader Tom Lee's bullish arguments for ETH are very "dumb" and represent the most severe case of financial illiteracy rhetoric he has seen recently. Andrew Kang refuted several of his bullish ETH arguments one by one:

· Stablecoin and RWA Adoption Argument. Kang believes that the Ethereum network upgrade has improved transaction efficiency, stablecoins and tokenization activities are also moving to other public chains, and the transaction fees generated by the tokenization of illiquid assets are negligible (a $100 million bond traded once every two years incurs only about $0.1 in fees).

· Digital Oil Analogy Fallacy. Kang believes that oil is a commodity, and the real oil price adjusted for inflation has remained in the same range over the past century. Viewing ETH as a commodity is not a bullish reason.

· Institutional Staking Capital Argument. Kang believes that large banks have not included ETH on their balance sheets, nor have they disclosed any plans, and banks will not hoard gasoline due to ongoing energy consumption needs, but will make on-demand purchases when demand is insignificant. Banks will also not invest in the asset custodian they use.

· ETH Equals Financial Infrastructure Enterprise Value Argument. Kang believes this is entirely a misunderstanding and fantasy of the value accumulation mechanism.

· Technical Analysis. Kang believes that objectively, Ethereum has been in a multi-year consolidation range, and after recently touching the top of the range, it has failed to break through resistance, indicating a bearish technical stance. Although the long-term ETH/BTC chart is in a consolidation range, it has mainly shown a downtrend in recent years, with the fundamentals not supporting valuation growth. Ethereum's valuation is mainly due to financial illiteracy—similar to XRP, but this valuation is not unlimited. While macro liquidity supports ETH's market cap, it will continue to underperform without significant changes.