Ethereum PoW fork gets some crypto exchange support
The Ethereum “Merge” is imminent – an event intended to shift the Ethereum blockchain from its current proof-of-work (PoW) consensus mechanism to proof-of-stake (PoS), the latter being seen as faster, using less energy, offers more security, and is better for scaling projects. It is expected to happen on 15 or 16 September.
But miners unwilling to give up their business are rallying to try to create forks that will continue to run on the proof-of-work system to maintain mining operations.
Most analysts are not optimistic about the prospects of the possible PoW fork – for example, research from the crypto exchange BitMEX said that the PoW fork will eventually wither due to the lack of the DeFi ecosystem.
However, crypto exchanges include some large ones, such as Coin baseBinance, OKX, PoloniexBitMEX, MEXC GlobalGate.io, has revealed its support for a potential PoW token.
“There will be a lot of volatility and speculation around the launch of an ETH PoW token. This will provide opportunities for smart traders to make money, and some exchanges will want to piggyback on this process,” said Charmyn Ho, head of crypto insights at Bybit. Discard. Bybit is also one of the exchanges that will support the potential PoW fork.
Behind the actions of exchanges is an opportunity for investors to potentially profit from a PoW fork. After the potential fork happens, “everyone will get free money,” one of the PoW fork leaders, Chandler Guo, said in a Bloomberg interview.
BitMEX pointed out in a research report that when the PoW fork becomes a reality, Ether holders will get the same amount of ETHPoW token on the PoW fork chain and can profit by selling the ETHPoW tokens.
David Z. Morris, CoinDesk’s Chief Insights columnist, said in an article that he will move Ethers from exchanges to local addresses and wait for the fork to happen, then sell most of the PoW tokens received from the fork via an available exchange as soon as possible. as possible, and “buy me a sandwich or a gold watch.”
“It is one of the best opportunities for tier 2 exchanges to attract users and benefit from this merger,” said Iakov Levin, founder and CEO of crypto lender Midas Investment.
Investors may have already started taking action. Ethers are flowing out of exchanges — Ether deposits on exchanges reached one a month low on Thursday, as Ether flows out of exchanges reached its highest in a month.
The addresses hoarding Ethers rise. On Thursday, addresses holding more than 10 Ethers reached an all-time highwhile addresses have over 10,000 Ethers reached three months high.
“And obviously you really have a tremendous amount of volume for this part, there will be a lot of speculation,” Levin said Discard.
There are 120.33 million Ethers supplying the market as of August 31, according to crypto data website YCharts. There would be the same number of tokens on a PoW fork chain.
