COINOTAG reported on September 24 that Mechanism Capital partner Andrew Kang publicly challenged Tom Lee‘s bullish case for Ethereum (ETH), characterizing Lee’s arguments as examples of severe financial illiteracy. Kang’s post dissects multiple bullish narratives and frames them as overstated when measured against on‑chain activity and macroeconomic context.
Kang disputed the notion that stablecoin and RWA tokenization materially support fee revenue on Ethereum, noting migration of some activity to alternative chains and arguing transaction fees from infrequent, illiquid trades are immaterial. He also rejected the “digital oil” analogy for ETH and questioned claims that institutional staking or banks’ balance‑sheet adoption will meaningfully drive valuations.
From a technical and valuation perspective, Kang highlighted a prolonged consolidation in ETH price action, a recent failure to breach resistance, and a downtrend versus BTC that—absent substantive fundamental shifts—suggests continued underperformance despite supportive macro liquidity.