In 32 days, Ethereum is expected to transition 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 testnets have implemented the new rules, most people envision a relatively smooth mainnet transition. However, another chain is expected to move away from the Ethereum branch and since August 8, the proposed fork called ETHW has gained market value in a few IOU markets. Despite the collected value, the potential token lost more than half of its USD value in less than six days.
As ETHW Captures Value, Offered Ethereum Fork Token Price Shakes Over 53%
Ever since bitcoin miner Chandler Guo started talking about a new proof-of-work (PoW) version of Ethereum, after the chain transitioned to proof-of-stake (PoS), the idea has gained traction. . Crypto-asset exchange Poloniex has revealed the launch of ETHW markets and there is a new website called ethereumpow.org.
Coinmarketcap.com stats show that MEXC, Digifinex, Gate.io, and Poloniex list ETHW IOU markets. But the ETHW site also claims to have ties to a number of “communities, exchanges, miners, and individuals.” [that] have worked together to make ETHW possible. VerticalTwitter tendencies show that the ETHW fork is controversial among hardcore Ethereum supporters and Ethereum Classic supporters have intervened as well.
The website shows connections via ETHW exchange listings and suspected mining supporters with mentioned companies such as Binance, FTX, Antpool, Poolin, Coincheck, Huobi, Hiveon, Flexpool.io, 2miners.com, F2pool and Bitfly. ETHW has been listed on exchanges offering IOU markets for about six days so far.
— ETCPOW (@ETCPOW) August 5, 2022
Ethereumpow.org also claims to have a bridge partner and advertises Bridgetech’s logo on the site. When the markets officially launched and the ETHW came out, the value soared to an all-time high of around $141.36 per unit.
Since then, ETHW has lost 53% in value and compared to the current value of ETH, ETHW is 3.2% at current market prices. ETHW hit an all-time low on August 10, 2022, reaching $65.17 per coin and it is up 1.9% at the time of writing, trading for around $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 against PoW; miners could simply mine the most profitable chain.
— Galois Capital (@Galois_Capital) August 6, 2022
The value of ETHW is more comparable to the current value of Ethereum Classic (ETC), which is around $43.86 per unit at the time of writing. This means that ETHW is today $23 higher in USD value than the current value of ETC. Yet many crypto proponents have discussed how ETC was created for ideological reasons while ETHW is being called a “money grab”.
So far there has been no significant increase in Ethereum Classic hash rate
Most of the mining pools mentioned on ethereumpow.org already mine ethereum classic (ETC). For example, 2miners.com is the second largest ETC mining pool, devoting nearly six terahash per second (TH/s) to ETC’s PoW network.
What ETH PoW fork will mean for me:
Scenario B:$ETHW value is $0 from start
Strategy: post memes that make you laugh
Result: free fun
I can’t imagine a better event
— Alejandro Perezpaya (@aperezpaya) August 6, 2022
As for the ETHW fork, if even one of the aforementioned mining pools that allegedly back the chain starts mining it, ETHW will become a reality. Currently, dozens of Ethereum mining pools are apparently mining ETH to death, as the rise of the crypto asset has made it very useful.
The hashrate of ETH is much larger than that of ETC and so far there has been no significant increase in the hashrate of ETC except for the initial peak on July 28, 2022. Ethereum is currently one of the most profitable crypto networks to mine today, such as Bitmain’s new Antminer E9. , with 2.4 gigahash per second (GH/s) or 0.0024 TH/s, can generate an estimated profit of around $63.43 per day.
What do you think of the proposed Ethereum fork and how the IOU token already lost half of its value last week? Let us know what you think about this topic in the comments section below.
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