Core Viewpoint - Andrew Kang criticizes Tom Lee's Ethereum thesis, labeling it as financially illiterate and flawed, particularly regarding the reliance on stablecoin and real-world asset adoption to drive Ethereum's value Group 1: Critique of Ethereum's Value Drivers - Kang argues that despite a 100-1000x increase in tokenized asset value and stablecoin transaction volumes since 2020, Ethereum's fees remain unchanged, indicating a disconnect between asset tokenization and fee generation [1] - The migration of activity to other chains like Solana and Arbitrum has further diminished Ethereum's transaction efficiency [1] - Tokenizing low-velocity assets does not contribute significantly to Ethereum's fee structure, limiting its value growth potential [2] Group 2: Misguided Analogies - Kang dismisses Lee's comparison of Ethereum to "digital oil," asserting that oil is a commodity with stable pricing over time, which does not support a bullish outlook for Ethereum [3] - The analogy fails to recognize that if Ethereum is treated as a commodity, it does not inherently suggest a positive valuation trajectory [3] Group 3: Institutional Adoption Concerns - Kang highlights the absence of large financial institutions purchasing or planning to purchase Ethereum, questioning the feasibility of institutions holding ETH for operational purposes [4] - He compares the expectation of institutions holding ETH to banks hoarding gasoline, emphasizing that they only pay for energy as needed [4] Group 4: Valuation and Technical Analysis - Kang criticizes Lee's assertion that Ethereum could be valued as highly as all financial infrastructure companies combined, labeling it as a fundamental misunderstanding of value accrual [5] - While acknowledging the utility of technical analysis, Kang accuses Lee of misapplying it to support his biases [5] Group 5: Overall Valuation Concerns - Kang concludes that Ethereum's current valuation is sustained by "financial illiteracy," likening it to XRP's inflated market cap [6] - He suggests that unless significant organizational changes occur, Ethereum is likely to experience prolonged underperformance [6]

I joked the other day about Zhang with STSS potentially being the Tom Lee of Solana, but this clip starts to solidify that vision a little bit more.If you think crypto ppl are subject to KOL influence, traditional investing crowd is 10000x more.There's literal industries in traditional finance dedicated to letting other ppl tell you what to do with your money, and the best storytellers and vision casters are the winners there.We've all heard "digital gold" and "digital oil" for BTC/ETH (even if the convo ha ...

RT br0th3r 0d1n (@odin_free)Ethereum is digital oil.Bitcoin is digital gold.Starknet is .... ...

ETH is digital oil. Why the digital oil metaphor. What's the market value of oil.I mean, I think people are pretty familiar with gold, something like $20 trillion, something like this. How about oil. What's the market cap of oil.$85 trillion. So, there's some upside. So, we like it cuz it's a bigger number. Is that why we like it. We like it for a lot of reasons.One is it's a bigger number. Oil is a strategic asset. It is a strategic reserve asset.It powers economies. It's stockpiled on a national level. It ...

It's not going to be long until people say ETH belongs in a portfolio with Bitcoin. But coming back to the tech stock part, it just you're missing the forest for the trees. You're saying that cash flows are just one tiny tiny portion. We should be looking at what digital oil means for the digital economy, what a store of value asset, what a reserve asset, what a fuel actually means. And that belongs in the same conversation, in the same valuation zone as Bitcoin, if not higher. Beglas Nation, we have VC and ...