Close Menu
    What's Hot

    Staggering 47 Billion XRP Now Safeguarded

    July 10, 2025

    XRP Surges to 7-Week Peak as Whale Accumulation Grows

    July 10, 2025

    Think Tank Advocates 3% Bitcoin Allocation for States

    July 10, 2025
    Facebook X (Twitter) Instagram
    Facebook X (Twitter) Instagram
    Finances Zippy
    Subscribe
    • Home
    • Business
      1. Markets
      2. Insights
      3. View All

      Staggering 47 Billion XRP Now Safeguarded

      July 10, 2025

      XRP Surges to 7-Week Peak as Whale Accumulation Grows

      July 10, 2025

      Think Tank Advocates 3% Bitcoin Allocation for States

      July 10, 2025

      Nexo Reports 72% Yearly Surge in Crypto Card Borrowing

      July 10, 2025

      Staggering 47 Billion XRP Now Safeguarded

      July 10, 2025

      XRP Surges to 7-Week Peak as Whale Accumulation Grows

      July 10, 2025

      Think Tank Advocates 3% Bitcoin Allocation for States

      July 10, 2025

      Nexo Reports 72% Yearly Surge in Crypto Card Borrowing

      July 10, 2025
    • Crypto
      • Bitcoin
      • Ethereum
    • More
      • About Us
      • Disclaimer
      • Contact
    Finances Zippy
    Home»Crypto»Hedge Fund Declares Ethereum a Defunct Investment Opportunity
    Hedge Fund Declares Ethereum a Defunct Investment Opportunity. The
    Crypto

    Hedge Fund Declares Ethereum a Defunct Investment Opportunity

    financeBy financeMarch 31, 2025No Comments4 Mins Read
    Share
    Facebook Twitter LinkedIn Pinterest Email

    Introduction: The world of cryptocurrency never sleeps, and neither do its debates. Recently, the investment viability of Ethereum (ETH) has been called into question by a key figure in the industry, sparking intense discussion among some of cryptocurrency’s biggest names. This article delves into various perspectives of this engaging argument, presenting the views of Quinn Thompson, Chief Investment Officer (CIO) of Lekker Capital, who initially ignited the debate, and the countering opinions of heavyweights such as Nic Carter of Castle Island Ventures, professor Omid Malekan of Columbia Business School, and Scott Johnsson of VB Capital.

    The Ethereum Investment Debate

    In an explosive post, Quinn Thompson, the CIO at Lekker Capital, proclaimed Ethereum (ETH) as a “dead” investment. His claim led to an outpouring of responses from key voices in the realm of cryptocurrency, among them Nic Carter of Castle Island Ventures, cryptocurrency specialist and Columbia Business School professor Omid Malekan, and Scott Johnsson with VB Capital.

    Thompson’s Argument Against Ethereum

    Thompson’s argument stems from lacklustre metrics indicating a decline in Ethereum’s transaction activity, user growth, and fees/revenues, leading him to conclude that Ethereum has lost its appeal as an investment. He argues that while Ethereum remains a network with utility, its investment prospects are non-existent.

    Is Ethereum’s Economic Viability at Stake?

    Thompson’s remarks set off a ripple effect within the crypto industry, leading to a lively debate on Ethereum’s economics and its investment worth. The discussion leaned heavily towards the impact of Ethereum’s Layer 2 (L2) scaling solutions on its native token economics.

    Responses to Thompson’s remarks

    Nic Carter of Castle Island Ventures and co-founder of blockchain analytics firm Coinmetrics, was quick to reply to Thompson’s post. Carter believes that the main cause of Ethereum’s predicament is its own L2 scaling implementations, which he asserts are taking away value from Ethereum’s Layer 1.

    Thompson credited Carter’s perspective, further asserting that Ethereum’s community consensus had unintentionally encouraged token proliferation, which in turn undermined ETH’s investment case.

    Conversely, Omid Malekan countered both Carter and Thompson’s views. Malekan underscored the importance of Layer 2s for blockchain scalability, arguing that their value extraction wasn’t necessarily detrimental to Ethereum’s foundational token economics.

    Differing Opinions on Ethereum’s Future

    As the debate progressed, Thompson and Scott Johnsson of VB Capital locked horns over Ethereum’s investment future, particularly concerning its deflationary token burning mechanics. Johnsson critiqued Thompson’s comparison of Ethereum to oil, emphasizing that Ethereum’s token creation inversely correlates to its usage, unlike oil’s supply and demand mechanism.

    Meanwhile, Thompson maintained that historical trends don’t necessarily back an inverse correlation between Ethereum production and usage. In response, Johnsson clarified that he was merely highlighting the hypothetical inverse relationship between token burn and transaction volume under Ethereum’s current network design.

    As the debate remains ongoing, the trading price of ETH stood at $1,793 at press time.

    This comprehensive yet balanced overview of the Ethereum debate serves to inform and guide readers towards making calculated investment decisions. For a more profound understanding, the following FAQs further deep dive into this topic:

    What was Thompson’s argument against Ethereum?

    Quinn Thompson, the CIO of Lekker Capital, argued that Ethereum’s declining transaction activity, user growth, and fees/revenues made it a “dead” investment. He posited that Ethereum’s value lies in its utility, not its investment potential.

    What were the counter-arguments to Thompson’s stance?

    Nic Carter of Castle Island Ventures and professor Omid Malekan of Columbia Business School presented contrasting views. Carter blamed Ethereum’s L2 scaling implementations for its issues, while Malekan highlighted the importance of Layer 2s in blockchain scalability, claiming that their value extraction didn’t necessarily harm Ethereum’s foundational token economics.

    What are the investment implications based on this debate?

    The debate underscores the complex and evolving nature of the crypto market. Investors should take into account these differing perspectives and conduct thorough research when considering investment in Ethereum or any other cryptocurrency.

    Our editorial process at Bitcoinist encompasses strict sourcing standards, diligent review by top technology experts and seasoned editors, to provide thoroughly researched, accurate, and unbiased content. We uphold the integrity, relevance, and value of our content for the benefit of our readers.

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    finance
    • Website

    Related Posts

    Staggering 47 Billion XRP Now Safeguarded

    July 10, 2025

    XRP Surges to 7-Week Peak as Whale Accumulation Grows

    July 10, 2025

    Think Tank Advocates 3% Bitcoin Allocation for States

    July 10, 2025

    Nexo Reports 72% Yearly Surge in Crypto Card Borrowing

    July 10, 2025
    Add A Comment
    Leave A Reply Cancel Reply

    Top Posts

    The Bit Journal– Your Trusted Source for Crypto, Finance, and Technology News

    Sponsor: TBJ PostMarch 14, 2025

    Subscribe to Updates

    Get the latest sports news from SportsSite about soccer, football and tennis.

    Your hub for trusted crypto news. Get clear insights, trends, and updates from the world of digital finance. Head to our homepage for more content.

    Stay connected. Follow us online:

    Facebook X (Twitter) Instagram Pinterest YouTube
    Top Insights

    Staggering 47 Billion XRP Now Safeguarded

    July 10, 2025

    XRP Surges to 7-Week Peak as Whale Accumulation Grows

    July 10, 2025

    Think Tank Advocates 3% Bitcoin Allocation for States

    July 10, 2025
    Get Informed

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    Disclaimer:


    All information provided on this website is for general informational purposes only and should not be interpreted as investment advice. Nothing presented here constitutes an explicit or implicit recommendation regarding any financial product, investment vehicle, or strategy. The content does not take into account your personal objectives, financial circumstances, or specific needs; therefore, you should conduct your own research or seek guidance from a qualified advisor before making any financial decisions. Investing inherently carries risks, including the potential loss of part or all of your capital. This website and its content are not intended for use in jurisdictions where such investment activities are restricted or prohibited and should only be accessed in compliance with applicable laws. Additionally, investor protection regulations in your country or region may not apply to activities conducted through this site. While the use of this website is free of charge, we may have partnerships with certain companies featured on the site and may earn commissions through referral links.

    Type above and press Enter to search. Press Esc to cancel.