Proposed Ethereum PoW Fork Token Loses Half Of Its Market Value In Less Than 6 Days – Markets & Prices Bitcoin News

In 32 days, Ethereum is expected to upgrade from a proof-of-work (PoW) consensus algorithm to a proof-of-stake (PoS) system after the network used PoW for seven years. While the test networks have implemented the new rules, most envision a relatively smooth transition to the main network. However, another chain is expected to depart from the Ethereum branch, and since August 8, the proposed fork called ETHW has gained market capitalization in a few IOU markets. Despite the value gathered, the potential token lost more than half of its USD value in less than six days.

As ETHW Captures Value, Proposed Ethereum Fork Token’s Price Shakes By More Than 53%

Ever since bitcoin miner Chandler Guo started talking about a new proof-of-work (PoW) version of Ethereum, following the chain transitions to proof-of-stake (PoS), the idea has gained some traction. Crypto asset exchange Poloniex revealed the launch of ETHW markets and there is a new website called ethereumpow.org.

Statistics from coinmarketcap.com indicate that MEXC, Digifinex, Gate.io, and Poloniex show the ETHW IOU markets. But the ETHW website also claims to have connections with a number of “communities, exchanges, miners and individuals [that] have worked together to make ETHW possible.” Twitter vertical trends shows that the ETHW fork is controversial among die-hard Ethereum supporters and Ethereum Classic supporters have chimed in also.

The website shows connections through ETHW exchange listings and alleged mining backers with mentioned businesses such as Binance, FTX, Antpool, Poolin, Coincheck, Huobi, Hiveon, Flexpool.io, 2miners.com, F2pool and Bitfly. ETHW has been listed on exchanges that offer IOU markets for about six days so far.

$ETC is the original chain. $ETH is a fork. And $ETHW is a fork of a fork. pic.twitter.com/0PkIYu4RrE

— ETCPOW (@ETCPOW) 5 August 2022

Ethereumpow.org also claims to have a bridge partner and advertises Bridgetech’s logo on the site. When the markets officially launched and ETHW came out of the gate, its value jumped to an all-time high of around $141.36 per unit.

Since then, ETHW has lost 53% in value and compared to ETH’s current value, ETHW represents 3.2% in current market prices. ETHW hit an all-time low on August 10, 2022, reaching $65.17 per coin, and is up 1.9% at the time of writing, trading at approximately $66.10 per unit.

There are 5 main differences between this ETH1-ETH2 fork and the ETC-ETH fork. (1) The ETC-ETH fork was mainly due to ideology. It was PoW vs PoW; the miners could only break the chain that was more profitable.

— Galois Capital (@Galois_Capital) 6 August 2022

ETHW’s value is more comparable to ethereum classic’s (ETC) current value, which is around $43.86 per unit at the time of writing. That means ETHW is $23 higher in USD value today than ETC’s current value. Nevertheless, many crypto followers have discussed how ETC was created for ideological reasons while ETHW is being created called a “money grab”.

So far, there have been no meaningful increases in the Ethereum Classics Hashrate

Most of the mining pools mentioned on ethereumpow.org already have ethereum classic (ETC). For example, 2miners.com is the second largest ETC mining pool, dedicating close to six Terahashes per second (TH/s) to ETC’s PoW network.

What ETH PoW fork will mean for me:

Scenario A:
the value is shared across both chains
Strategy: Sell $ETHW to $ETH
Outcome: more $ETH than before.

Scenario B:$ETHW the value is $0 from the beginning
Strategy: post memes that laugh at
Outcome: free fun

Can’t think of a better arrangement

— Alejandro Perezpayá (@aperezpaya) 6 August 2022

As for the ETHW fork, if even one of the aforementioned mining pools that supposedly support the chain start mining it, ETHW will become a reality. Currently, there are dozens of ethereum mining pools seemingly mining ETH to the last minute, as the crypto asset’s rise has made it quite valuable to do so.

ETH’s hash rate is much larger than ETC’s and so far there have been no meaningful increases in ETC’s hash rate, except for the first peak on July 28, 2022. Ethereum is currently one of the most profitable crypto networks to mine today, like Bitmain’s new Antminer E9 , with 2.4 gigahash per second (GH/s) or 0.0024 TH/s, can get an estimated profit of around $63.43 per day.

What do you think about the proposed Ethereum fork and how the IOU token has already lost half of its value in the last week? Let us know what you think about this topic in the comments section below.

Jamie Redman

Jamie Redman is the news editor at Bitcoin.com News and a financial technology journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source and decentralized applications. Since September 2015, Redman has written more than 5,700 articles for Bitcoin.com News about the disruptive protocols emerging today.