- “Exit liquidity” accusations
- “It isn’t a bug, it is a characteristic”
Tom Lee is staring down a $7 billion gap in his stability sheet, however Wall Avenue’s most well-known permabull seems to be unfazed (at the very least on social media).
The Fundstrat co-founder and vocal crypto bull took to X (previously Twitter) on Tuesday to defend BitMine (BMNR), the Ethereum treasury firm he champions, in opposition to scathing criticism relating to its huge unrealized losses.
BitMine’s aggressive accumulation technique has left it underwater by roughly $6.6 billion. Nonetheless, Lee nonetheless believes that ETH is the “way forward for finance.”
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“Exit liquidity” accusations
The protection got here in response to a viral put up by crypto dealer “Flood” (@ThinkingUSD). The chartist argued that the sheer dimension of BitMine’s underwater place may truly threaten the Ethereum ecosystem attributable to huge potential promoting stress.
The worry is that the corporate successfully created a “future ceiling” on ETH costs.
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“BMNR is now sitting on a -$6.6 Billion greenback unrealized LOSS on the ETH they’ve gathered,” Flood wrote. “Tom Lee was the ultimate exit liquidity for OG ETH whales to get out of their nugatory token.”
“It isn’t a bug, it is a characteristic”
Lee, who was credited with reviving ETH final 12 months, tried to border the gargantuan losses because the pure mechanics of an asset-tracking automobile.
He argued that critics have been basically misunderstanding the aim of an Ethereum treasury.
“These tweets miss the purpose of an Ethereum treasury,” Lee countered. “BitMine is designed to trace the value of $ETH… crypto is in a downturn, so naturally ETH is down.”
He went on to ship a memorable soundbite relating to the billions in pink ink: “It’s not a bug, it’s a characteristic.”
Lee additional challenged the double commonplace utilized to crypto firms, asking, “Lets name out all index ETFs for his or her losses?”
As reported by U.At present, Lee lately admitted that crypto had carried out worse than anticipated. Lee partially attributed the meltdown to uncertainty surrounding the brand new Fed choose, Kevin Warsh, spooking the market.