ETH went from $0.30 to $4,800 - a 16,000x return that created more crypto millionaires than any other altcoin.But here's what nobody talks about: the utility that drove ETH's growth is now its biggest liability.Gas fees that once meant "network demand" now mean "too expensive to use." As we explored in Solana vs $IPO, infrastructure is commoditizing fast. Meanwhile, a new category of utility tokens is emerging - ones that don't charge you to use them, but reward you for holding them.$IPO is built on this thesis. Let's compare.
ETH's Utility: The Gas Fee ModelEthereum's value proposition was revolutionary: a programmable blockchain where ETH is required to execute any transaction.The bull case (2015-2021):More dApps = more transactions = more ETH burnedDeFi summer drove ETH demand through the roofNFT mania made gas fees hit $200+ per transaction"Ultrasound money" - ETH becoming deflationaryThe bear case (now):High fees pushed users to L2s and competing chainsSolana, Avalanche, and others eat market shareETH's utility became "pay to play" rather than "hold to benefit"Network effects weakening as multi-chain becomes normETH is still valuable. But the growth thesis - that gas fees would drive endless appreciation - is showing cracks.
$IPO's Utility: The Access Model$IPO represents a fundamentally different utility model: hold tokens, get access to deals.Instead of paying fees to use the network, $IPO holders unlock:Pre-IPO deal allocation: Access to vetted private market opportunitiesAI-powered scoring: Due diligence that would cost $50K+ from analystsGovernance rights: Vote on platform direction and deal curationStaking rewards: Earn yield while maintaining accessThe key difference: ETH's utility extracts value from users. $IPO's utility delivers value to holders.
The Math: Utility-Driven DemandLet's model both approaches:ETH demand drivers:Transaction volume × gas priceStaking yield (~4-5%)Speculation on future adoption$IPO demand drivers:Access to $X billion in pre-IPO deal flowPlatform revenue share to stakersGovernance value as platform scalesScarcity as more users need tokens for accessThe difference: ETH demand is tied to transaction costs. $IPO demand is tied to investment returns.Which would you rather bet on - people wanting to pay more fees, or people wanting access to 100x deals?
Why Access Tokens Could Outperform InfrastructureInfrastructure tokens (ETH, SOL, AVAX) had their moment. The next cycle may belong to access tokens - tokens that unlock real-world value.The thesis:Infrastructure is commoditizing (every chain is "fast and cheap" now)Real utility means real demand, not just speculationAccess to private markets is a $4+ trillion opportunityTokenized access is still early - like ETH in 2016ETH's early investors believed in "programmable money." $IPO's early investors believe in "democratized access." See how BNB built an empire on platform utility using a similar approach.Both are bets on utility. The question is which utility has more room to grow. The broader lesson for early investors is clear: the greatest returns in crypto have always come from identifying genuine utility before the mainstream catches on. ETH proved that model in 2015. The next wave of outperformance will likely reward tokens that connect blockchain to tangible, off-chain value.Related: What is Tokenomics? | Pre-IPO Investing Explained
Frequently Asked QuestionsQ: Is $IPO competing with Ethereum?No - $IPO is built on blockchain infrastructure (ERC-20). It's not a competing chain but a utility token that uses existing infrastructure to deliver a specific service: access to pre-IPO deals.Q: Can $IPO really grow like ETH did?Different scale, different thesis. ETH captured the "programmable blockchain" narrative. $IPO is targeting the "democratized private markets" narrative - a smaller but still massive opportunity.Q: What's the risk?All crypto is risky. $IPO's specific risks include: platform adoption, deal quality, regulatory changes, and competition. But unlike pure speculation, there's underlying utility driving demand.
