Does Ethereum’s new ETHPoW fork stand a chance? ETHW price falls 65% post-Merge

ETHPoW, a separatist proof-of-work (PoW) blockchain forked from Ethereum’s Merge, went live on Sept. 15. However, the chain suffered technical issues after the launch, which put downward pressure on its ETHW token. 

ETHW price down 65% amid “ChainID” fiasco

The price of ETHW has dropped by 65% since ETHPoW’s launch to around $14 on Sept. 16, according to CoinMarketCap. At its lowest, the token was changing hands for $9.50.

ETHW price performance in the past seven days. Source: CoinMarketCap

The losses coincided with a technical issue related to ETHPoW’s ChainID.

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ChainIDs are identifiers that help users identify one blockchain from another. Thus, ETHPoW required a new ChainID to separate its transaction data from the original Ethereum blockchain after the Merge, otherwise, it risked creating duplicate transactions.

The workforce behind ETHPoW announced on Sept. 15 that its distinctive ChainID is 10001. Nevertheless, knowledge from Chainlist shows {that a} cryptocurrency challenge referred to as Sensible Bitcoin Money, working underneath the ticker BCHT, has the identical ID. This subject resulted in errors on the MetaMask cryptocurrency pockets.

The ETHPoW acknowledged the difficulty and adjusted the ChainID in a while Sept. 15. Nevertheless, a number of miners appeared to have pulled out regardless of a few major pools persevering with to mine the PoW chain.

Notably, the ETHPoW hash charge fell to 66.64 TH/s on Sept. 16 after peaking at 80.56 TH/s earlier within the day.

ETHPoW hashrate as of Sept. 16, 2022. Supply:

Compared, the hash charge of Ethereum Basic (ETC), another PoW alternative for Ethereum miners, was 234.56 TH/s on Sept. 16 versus its peak close to 310.5 TH/s the day earlier than.

ETHW listed on some exchanges regardless of considerations

Eric Wall, the chief funding officer at cryptocurrency funding agency Arcane Belongings, noted that ETHPoW miners couldn’t maintain the chain at present ETHW costs. He defined:

“The every day rewards are 13100 ETH, $354k as an alternative of $20m. There is no such thing as a approach miners can simply “hold mining” the ETHPoW chain, regardless of the way you modify the problem. There merely aren’t sufficient rewards within the system to pay for the electrical energy payments.”

Associated: Dogecoin becomes second largest PoW cryptocurrency

Nonetheless, ETHW was listed at some main cryptocurrency exchanges, together with FTX and Huobi. As well as, BitTrue has additionally introduced an ETHW-based liquidity staking service that provides depositors a 6% annual return.

The views and opinions expressed listed here are solely these of the writer and don’t essentially replicate the views of Each funding and buying and selling transfer entails danger, it’s best to conduct your individual analysis when making a call.