Research firm Culper just announced they’re shorting Ethereum and Bitmine. In a post on X, the firm claims ETH’s tokenomics got completely broken after last December’s Fusaka upgrade.

They’re also calling out Tom Lee, a well‑known crypto figure. Lee runs Bitmine, which has been stacking ETH, and he keeps talking up Ethereum’s fundamentals—pointing to rising active addresses and transaction counts. Culper’s investigation found that most of that activity is actually wallet address poisoning. It’s a phishing tactic where scammers dust victims with tiny amounts to track their wallets, then trick them into sending funds to addresses that look almost identical to their own. The attackers send tiny token amounts just to monitor the wallets. Culper blames excessive block space for enabling this.

The report also claims the Fusaka gas limit increase was miscalculated—and that Vitalik has been, and still is, selling his bags because he knows the tokenomics are broken. Culper’s conclusion: ETH keeps bleeding market share to Solana and L2s, and Tom Lee is going to end up completely cornered.

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