{"id":491572,"date":"2022-09-09T17:40:00","date_gmt":"2022-09-09T14:40:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/ethereums-potential-fork-ethpow-has-crashed-80-since-debut-more-pain-ahead\/"},"modified":"2022-09-09T17:40:00","modified_gmt":"2022-09-09T14:40:00","slug":"ethereums-potential-fork-ethpow-has-crashed-80-since-debut-more-pain-ahead","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/ethereums-potential-fork-ethpow-has-crashed-80-since-debut-more-pain-ahead\/","title":{"rendered":"# Ethereum&#8217;s potential fork ETHPOW has crashed 80% since debut \u2014 More pain ahead?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a27fbc49ba6e\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a27fbc49ba6e\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/ethereums-potential-fork-ethpow-has-crashed-80-since-debut-more-pain-ahead\/#%E2%80%9D_Ethereums_potential_fork_ETHPOW_has_crashed_80_since_debut_%E2%80%94_More_pain_ahead_%E2%80%9C\" >&#8221; Ethereum&#8217;s potential fork ETHPOW has crashed 80% since debut \u2014 More pain ahead? &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/ethereums-potential-fork-ethpow-has-crashed-80-since-debut-more-pain-ahead\/#ETHPOW_drops_80\" >ETHPOW drops 80%\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/ethereums-potential-fork-ethpow-has-crashed-80-since-debut-more-pain-ahead\/#Paradigm_report_cast_another_bearish_blow_on_ETHW\" >Paradigm report cast another bearish blow on ETHW<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Ethereums_potential_fork_ETHPOW_has_crashed_80_since_debut_%E2%80%94_More_pain_ahead_%E2%80%9C\"><\/span>&#8221; Ethereum&#8217;s potential fork ETHPOW has crashed 80% since debut \u2014 More pain ahead? &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-71846793>The listing of ETHPOW (ETHW) across multiple crypto exchanges has been followed by a huge drop in price despite some initial success.\u00a0<\/p>\n<h2><span class=\"ez-toc-section\" id=\"ETHPOW_drops_80\"><\/span>ETHPOW drops 80%\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>On the daily chart, ETHW&#8217;s price dropped by more than 80% to $25 on Sept. 10, over a month after its market debut.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-09\/250ae9ed-a894-4874-b487-bb030ff73531.png\"><figcaption style=\"text-align: center;\"><em>ETHW\/USD daily price chart. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>For starters, ETHPOW only exists as a futures ticker, for now, conceived in anticipation that an upcoming network update on Ethereum could result in a chain split.<\/p>\n<p>Ethereum will undergo a major protocol change called the Merge\u00a0by mid-September, switching its existing consensus mechanism from proof-of-work (PoW) to proof-of-stake (PoS).<\/p>\n<p>Therefore, Ethereum will obsolete its army of miners, replacing them with &#8220;validators,&#8221; which are nodes that would perform the same tasks by merely staking a certain amount of tokens with the network.<\/p>\n<p>As a result, current Ethereum miners will be forced to migrate to other PoW chains or shut down. Ethereum Classic (ETC), which carries the original Ethereum PoW code, has benefited the most by becoming a haven for such miners.\u00a0<\/p>\n<p>For instance, the chart below shows Ethereum Classic&#8217;s hashrate rising and Ethereum&#8217;s hash rate dropping in the days leading up to the Merge.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-09\/61222e1e-f7e9-4a34-9cb6-aa360f6fb78b.jpeg\"><figcaption style=\"text-align: center;\"><em>Ethereum Classic vs. Ethereum hash rate. Source: CoinWarz<\/em><\/figcaption><\/figure>\n<p>But Ethereum Classic may not be the only option for ETH miners.\u00a0<\/p>\n<p>Chandler Guo, one of the most prominent crypto miners, has <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/EthereumPoW\/status\/1563104108457779200\">proposed<\/a> that miners continue to validate and add blocks to the current PoW Ethereum chain post-Merge. This so-called contentious hard fork\u00a0would keep the current Ethereum PoW chain alive, which Guo and supporters have termed ETHPOW.<\/p>\n<p>And just as the Ethereum blockchain has its native coin in Ether (ETH), the new ETHPOW chain will have its asset called ETHW. Anybody holding ETH ahead of the Merge will receive an equal amount of ETHW after the potential chain split.<\/p>\n<p><strong><em>Related:\u00a0Ethereum Merge can trigger high volatility, BitMEX CEO warns<\/em><\/strong><\/p>\n<p>However, given the significant downside risk of ETHPOW, traders <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ear to be more comfortable holding ETH, enabling them to receive ETHW as well should a chain split occur.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">History would suggest <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$ETH<\/a> PoW forks are best sold. ETHW IOUs are now $30-33 (-67% from 1 month ago). I wouldn&#8217;t sell the forks &#8212; in case it doesn&#8217;t happen &#8212; and your <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$ETH<\/a> is locked into the contract.<\/p>\n<p>So if you&#8217;re fast, think of this as a free 1.7% dividend on your <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$ETH<\/a>. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/RRCc7kmV24\">https:\/\/t.co\/RRCc7kmV24<\/a><\/p>\n<p>\u2014 Mira Christanto (@asiahodl) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/asiahodl\/status\/1568141905409769474?ref_src=twsrc%5Etfw\">September 9, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>In addition, decreasing ETHW price may also suggest that traders are betting that an Ethereum chain split is becoming less likely.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Paradigm_report_cast_another_bearish_blow_on_ETHW\"><\/span>Paradigm report cast another bearish blow on ETHW<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In a report published Sept. 1, crypto investment firm Paradigm\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.paradigm.co\/blog\/ethereum-merge-crypto-derivatives?utm_campaign=q3_22_eth_merge&amp;utm_source=twitter&amp;utm_medium=social\">argues<\/a>\u00a0that the cost of one ETHW token should not be more than $18 after launch. That is nearly 90% below the token&#8217;s record high of $198, established on Aug. 9.<\/p>\n<p>The firm cited backwardation, when futures trade lower than the spot prices, in the Ethereum Sept. 30 futures contracts as the reason behind its $18-price target for ETHPOW. <\/p>\n<p>The report highlights that some exchanges, including FTX and Deribit, will measure the rates of their ETH futures\/perpetual contracts by referencing Ethereum&#8217;s PoS version. <\/p>\n<p>And since the ETH futures price now trades at an $18 discount compared to spot prices, the ETHPOW token could draw at least an $18 valuation upon the potential fork.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-09\/fae96807-0930-431c-b93a-4ffe20601e8d.png\"><figcaption style=\"text-align: center;\"><em>FTX Ether futures basis. Source: Coinglass<\/em><\/figcaption><\/figure>\n<p>&#8220;We can infer how much the market estimates ETH PoW will be worth from simply looking at spot-future basis, since spot = POS + POW, while future is just POS,&#8221; the report explained, adding:<\/p>\n<blockquote><p>&#8220;Currently, the basis is implying ETH PoW to be priced ~$18, which is ~1.5% of ETH market cap.&#8221;<\/p><\/blockquote>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/ethereum-s-potential-fork-ethpow-has-crashed-80-since-debut-more-pain-ahead\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Ethereum&#8217;s potential fork ETHPOW has crashed 80% since debut \u2014 More pain ahead? &#8220; The listing of ETHPOW (ETHW) across multiple crypto exchanges has been followed by a huge drop in price despite some initial success.\u00a0 ETHPOW drops 80%\u00a0 On the daily chart, ETHW&#8217;s price dropped by more than 80% to $25 on Sept&#8230;.<\/p>\n","protected":false},"author":1,"featured_media":491573,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDkvYmZjNzBlOWUtZDA3Ny00YWJkLTlmYTAtZTcxMjdlOTEyODY4LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,88119,75499,74938,74939,74876,75578],"class_list":["post-491572","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-altcoin-watch","tag-ethereum-classic","tag-ethereum-price","tag-market-analysis","tag-proof-of-stake","tag-proof-of-work"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/491572","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=491572"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/491572\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/491573"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=491572"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=491572"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=491572"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}