Ethereum Fork ETHW Drops 62% Just Weeks Before Merger

Earlier this month, a group of crypto miners launched a campaign to withstand the impending Ethereum meltdown, an event that end the practice of ETH mining—by bifurcating the Ethereum network and create an alternative, yet mineable form of ETH in the process.

The new token offered by these miners, ETHW, initially attracted a good dose of buzz. But just a week after the token’s debut on several crypto exchanges, ETHW already seems to have lost a lot of momentum.

Since the first debuts on crypto exchange Poloniex on August 8, the price of ETHW fell by around 62%, according to data from CoinMarketCap. Currently, one IOU token of ETHW is trading at $52.59. In contrast, Ethereum itself is currently up 2% over the past day, but down around 1.3% over the past week.

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Additionally, the alt-token’s 24-hour trading volume is down more than 68% from its peak of $13.8 million at the start of the month, to $4.4 million today.

The ETHW does not yet exist; only if cryptocurrency supporters are able to succeed hard forkor split, the Ethereum network at the time of the merger, the alternative coin (and its adjoining network) will come into existence. The merger refers to when Ethereum main network combines with the proof-of-stake tag string. It is expected to take place in mid-September and will mark the completion of Ethereum’s long-awaited transition to proof-of-stake.

Some crypto exchanges, however, believed that the hype and narrative surrounding the creation of the alt coin would generate enough interest to justify listing ETHW before it even existed.

Over the past two weeks, Poloniex exchanges, Houbi, BitMEXand— no later than Tuesday, Bitrue– began listing ETHW-affiliated financial products, including futures and “IOU” tokens.

ETHW (IOU) cannot currently be withdrawn or traded between exchanges; if the ETHW fork is successful, an investor’s ETHW (IOU) will then be converted into reality. If no ETHW materializes after the merger, the remaining ETHW (IOU) would be converted to post-merger ETH.

An analyst from BitMEX, one of the exchanges currently listing ETHW futures, conceded to Decrypt that the ETHW is unlikely to ever approach the market value or utility of Ethereum. But despite this, the exchange expressed optimism that the token could provide “an exciting opportunity for traders and speculators in the short to medium term.”

But weeks before the merger even takes place, interest in ETHW seems to be fading fast. This is bad news for cryptocurrency supporters: the influx of miners trying to produce more ETHW after the merger will likely only drive the price of ETHW further down.

“I’m waiting for this [ETHW] will not be sustainable,” Ethereum lead developer Preston Van Loon previously said. Decrypt. “There won’t be enough buyers to absorb the constant selling pressure from miners and the currency will drop to zero.”

Disclaimer

The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment or other advice.

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Ethereum Fork ETHW Drops 62% Just Weeks Before Merger


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