Samson: Ethereum will be pumped and dumped; in the long run, no one wants it.
Ethereum ($ETH) recently surged past $4,300, reaching the highest weekly closing price since November 2021, with market sentiment soaring.
However, well-known Bitcoin supporter (OG) Samson Mow has warned that this surge may be a prelude to a scam, and ultimately the funds will flow back to Bitcoin ($BTC).
According to a report by Cointelegraph, Samson Mow, CEO of Bitcoin application company Jan3, claims that the current surge in Ethereum is primarily driven by early holders of large amounts of Bitcoin within the Ethereum community or participants in initial coin offerings (ICOs).
He pointed out that these individuals are transferring their Bitcoin funds into Ethereum, using new narratives like Ethereum reserve companies to boost prices.
Mow predicts that when the price of Ethereum is pushed up to an ideal level, these individuals will sell off their Ethereum, creating a new batch of bagholders, and will transfer profits back to Bitcoin.
He bluntly stated: 'In the long run, no one wants Ethereum,' and described the process of Ethereum challenging its historical high as 'the bagholder's dilemma,' believing that the closer it gets to that psychological barrier, the stronger the selling pressure will be.
Source: Bitcoin Magazine Well-known Bitcoin supporter (OG) Samson Mow
Ethereum advocates rebut: Bitcoin extremists' clichés.
However, Ethereum advocate Anthony Sassano believes that Mow's statements are just clichés from old-school Bitcoin extremists and are actually a bullish signal for the Ethereum market.
Investor Ted Pillows presented a view more in line with past market cycles. He predicts that Ethereum will first set a historical high, triggering a brief altcoin season, followed by funds rotating back to Bitcoin until the price of Bitcoin rises to about $140,000, after which funds will flow back to Ethereum and other altcoins.
This pattern of capital rotation has been quite typical in past bull markets. Data shows that since late June of this year, Bitcoin's market share has dropped below 60%, indicating that funds are continuously flowing into altcoins.
Further reading:
What are altcoins? How to invest? How to determine altcoin season
Source: CoinMarketCap Bitcoin's market share falls below 60%
Reserve companies continue to assist; V God warns of over-leverage risks.
Nick Ruck, director of LVRG Research, pointed out that institutional interest in Ethereum strategy reserves is a significant driver pushing it up to $4,300.
The trend of companies incorporating Ethereum into their corporate reserves is becoming increasingly evident; for example, BitMine Immersion Technologies increased its holdings last week, bringing its total Ethereum reserves to over $3 billion.
However, Ethereum founder Vitalik Buterin (V God) expressed concerns about this trend. He warned that if reserve companies overuse leverage, it could pose long-term risks to the Ethereum ecosystem.
V God stated: 'If you wake me up three years from now and tell me that reserve companies caused the decline of Ethereum, I would guess the reason is that they turned it into an over-leveraged game.'
Further reading:
Ethereum's market value surpasses Mastercard! V God's net worth exceeds $1 billion, but he also warns of the risks of reserve companies over-leveraging.
This article titled 'Bitcoin OG: Ethereum will be pumped and dumped! Funds will flow back to BTC, and in the long run, no one wants ETH' was first published in 'Crypto City'
