In a post at X at the end of last week, Queen Thompson, the chief investment official (CIO) at Lekker Capital, announced that Ethereum (ETH) is “completely dead” as an investment. His comments sparked a wave of responses from prominent figures in the encryption industry, including Nic Carter from Castle Island Ventures, and Professor of Business College at Colombia, Omid Malikan, and Skeut Johnson from VB Capital.
Tomson, who oversees investments in Lekker Capital, set out debate With a leaflet showing: “Do not make mistakes, ETH as an investment has died completely. The market ceiling network worth $ 225 billion is witnessing a decrease in the activity of transactions, user growth and fees/revenues. There is no investment status here. As a interest network?
A set of metrics also participated to emphasize the last ethereum stagnation, including data on active headlines, the number of transactions, and the creation of new addresses.
Is ethereum “dead” as an investment?
The provocative statement attracted immediate responses from prominent voices through the ecosystem for encryption, which led to a discussion about the ETHEREUM Economic and Investment thesis, specifically, the effect of layer 2 L2 (L2) solutions on the economies of the original symbol in Ethereum.
Nic Carter, partner in Castle Island Ventures and co -founder of Blockchain Analytics Coinmetrics, quickly responded, and the dilemma of ETHEREUM evaluation is on the basis of the second layer applications: “The reason for the excessive creation of this matter was driven by this excitement. The symbols died.
Thompson strengthened Carter’s criticism by noting that the consensus of the ETHEREUM community was unintentionally preferred to spread the distinctive symbol as a mechanism to meet wealth, in the end it undermines ETH’s investment narration: “Ensure that there is no excessive symbol. The market says that this was a mistake.”
However, this view has been waived by Omid Malekan, a professor at Colombia’s Business College and a Blockchain technology since 2019. Malikan Malikan stressed the decisive class 2S role in Blockchain’s expansion and argued that any advanced value is that there is any advanced value. Distinctive symbols are separate.
Malcanan also stabbed Thompson’s claim by asking whether the realist ethereum could become a first example in the history of a widely approved technology network, as its benefit failed to generate any meaningful financial return: “Will Etherum will be the first network” in interest “in modern history where a network is not invested? Can you provide any other examples of this occurrence?”
In response, Thompson explained his argument, with highlighting that his liquidity is already taking place within the ethereum ecological system, but he does not accumulate enough on ETH itself to verify the validity of the current market value of the cryptocurrency. This point has made it clear: “There are many effects of the network that is liquefied everywhere, and not only enough to justify its current evaluation. Do all the effects of the oil network network and use oil on oil?”
However, the analogy of oil has raised doubts from Scott Johnson, the general partner at VB Capital, who criticized the comparison of Thompson due to the unique features of Ethereum, especially the mechanics of burning the distinctive symbol that is directly assigned to the network:
“I do not disagree with your directional vocation, but I think this measurement decreases. ETH is inversely associated with use, and it is definitely not the case with oil. With the increase in oil prices, there is a response to the request and the response of the supply. With ETH, it is limited to the response response.
However, Thompson continued to be incompatible with Johnson’s evaluation, on the pretext that historical patterns do not necessarily support the adverse relationship between ETHEREUM production and its use: “I do not agree. We have never seen a sustainable period of time as“ ETH production is inversely associated with use. ”It is clear that the“ production mechanics ”is different from oil, but the price of the ETH is similarly high is an outrageous matter For order, thus L2S and L1S alternative.
With a possible misunderstanding, Johnson explained that he does not expect the scenarios for the use of future ETHEREUM, with confirmation instead of the theoretical reverse relationship between symbolic burning and the size of the transactions under the design of the current ETHEREUM network: “I think we are talking in the past each other. Any event, your final point is fine imo because the demand side is very sensitive to any really cost.”
At the time of the press, ETH was traded at $ 1793.
Distinctive image created with Dall.e, Chart from TradingView.com
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