Mechanism partners rebut Tom Lee in a lengthy article: The argument for a bullish ETH is very "stupid" and is the most serious recent financial illiteracy rhetoric.

On September 24, Andrew Kang, a partner at Mechanism Capital, stated on social media that Tom Lee, a leading figure among the ETH bullish traders, has a "weak" argument regarding the ETH bull market, which he considers one of the most severe cases of financial illiteracy he has seen recently. Andrew Kang refuted several of Lee's bullish arguments on ETH: · The stablecoin and RWA adoption argument. Kang believes that the Ethereum network upgrade has improved transaction efficiency, and stablecoin and tokenization activities are flowing to other public chains, with negligible fees generated from tokenizing low liquidity assets (a $100 million bond traded once every two years generates only about $0.1 in fees). · The digital oil analogy fallacy. Kang argues that oil is a commodity, and the real oil price adjusted for inflation has remained within the same range for a century. Viewing ETH as a commodity is not a bullish reason. · The institutional staking capital argument. Kang believes that large banks have not included ETH on their balance sheets and have not announced related plans; banks do not hoard gasoline due to continuous energy consumption demands, buying only as needed when demand is trivial. Banks will not invest in the asset custodians they use. · The argument that ETH is equivalent to the total value of financial infrastructure companies. Kang believes this is a complete misunderstanding and delusion of the value accumulation mechanism. · Technical analysis. Kang believes that objectively, Ethereum has been in a multi-year consolidation range, and after recently reaching the top of the range, it failed to break through resistance, and the technical outlook is actually bearish. Although the long-term ETH/BTC chart is in a range consolidation, it has shown a downward trend in recent years, and the fundamentals have not supported valuation growth. The valuation of Ethereum mainly stems from a lack of financial knowledge—much like XRP—but this valuation is not infinite. While macro liquidity supports ETH's market capitalization, it will continue to perform poorly without significant changes.