VC Firm Co-Founder Critiques Tom Lee’s Ethereum Investment Thesis
Andrew Kang, co-founder of Mechanism Capital, criticized Tom Lee's Ethereum investment thesis on X. Kang argued against Lee's points:
- Tokenization and stablecoin adoption do not necessarily lead to increased fees for Ethereum due to network upgrades and competition from other blockchains like Solana and Arbitrum.
- The "digital oil" analogy is flawed; real oil prices have remained stable over time, which does not support a bullish outlook for Ethereum.
- Ethereum is in a multi-year price range, with recent resistance at the upper end, and long-term ETH/BTC trends downward.
- Institutions are unlikely to accumulate and stake Ethereum as suggested, since banks typically do not hold such assets on their balance sheets.
Kang concluded that Ethereum's valuation is driven by financial misconceptions, predicting underperformance without significant organizational changes. Meanwhile, Tom Lee projects Ethereum could reach $10,000-$12,000 by end-2025 and potentially $62,500 in an optimistic cycle.
Currently, ETH trades near $4,000.
