Apparently there is a rumor in the crypto world. This guy Tom Lee apparently single-handedly saved ethereum? I heard this and then I thought I should take a look into what's going on because ethereum is having a tear these days. And what I found I think was disturbing. The reality is more ambitious and potentially dangerous. This is a multi-billion dollar acquisition if I can label it. Huge field so bitmine emerging technologies which is Tom Lee's firm is not actually rescuing ethereum but it is placing a huge institutional bet which could go either way.
So earlier this year this company went on a buying spree. Other investment giants within Wall Street obviously backed it. Not the conventional giants which we know, but they are relevant nonetheless. And in that buying spree they accumulated around 8.2 billion worth of ethereum and we know how ethereal has been acting up. So those 8.2 billion is probably a lot more money right now. But apparently the fun doesn't begin here. Rather it begins when according to their thesis Wall Street fully enters and embraces the blockchain. As you all know and I have mentioned in my previous writings, the future is about stable coins. Government and financial institutions are back in stablecoins and expecting them to be a substantial part of the economy in the future. Now the biggest piece of information here is that more than 50% of all stablecoins which are currently in circulation are backed by ethereum. So if and when Wall Street does what Tom Lee thinks they will do. They will have the biggest chair of the backing of all those stable coins which people will be using at that point. They also believe that for the same reason I just mentioned ethereum prices will go a lot higher than what it currently is. So there will be making money on multiple fronts.
This obviously sounds like a very clever investment from the outside, but there are always risks.suppose things never went to plan and they have to liquidate their position. Now if a cryptocurrency loses not the whole $8.2 billion but even half of that, $4 billion, all hell will break loose. And the coin may see a cascading liquidation effect and lose a ton of value. This move can be beneficial to them but it also poses the risks of them and ethereum all dying from the same poison.
