Justin Sun’s Ethereum fork project, called Ethereum PoW, is a monumental flop!

Justin Sun and Chandler Guo’s initiative for a Proof-of-Work Ethereum fork has so far garnered little market interest.

Low Interest in EthereumPoW

Poloniex’s EthereumPoW (ETHW) listing saw just $3.6 million in volume on its first day of trading.

The token representing a potential proof-of-work based Ethereum fork, currently called EthereumPoW, has struggled to garner significant support from the wider crypto community, despite strong promotion by TRON founder Justin Sun and of Chinese miner Chandler Gou. ETHW listed on the Sun-backed Poloniex exchange over the weekend and only saw $3.6 million in trading volume.

According to the CoinGecko data, the most traded pair in the fork, ETHW/ETH, recorded a trading volume of around $1.31 million on the first day of trading, while ETHW/USDT and ETHW/USDD have registered approximately $1.2 million and $1.1 million, respectively. In comparison, the most traded Ethereum pair, ETH/USDT, is currently seeing around $1 billion in daily volume on Binance alone.

Ethereum is expected to transition from a proof-of-work consensus mechanism to a proof-of-take mechanism in mid-September. historical update, The Merge will allow Ethereum to adopt a less energy-intensive security model and make miners obsolete. Under the new model, Ethereum users will be able to stake their ETH and order, verify, and settle transactions, securing the network and receiving ETH rewards in return.

Despite the massive support of the Ethereum community for the merger, some factions of the ETH community plan to support Ethereum offshoots that would adopt the old Proof-of-Work consensus mechanism. The most promising of the proposed forks is the EthereumPoW fork, promoted primarily by Sun and Chandler Gou, which seeks to keep an older version of Ethereum running with the “difficulty bomb” mining deleted. Chandler Gou reportedly employed more than 60 developers to prepare for the fork ahead of the merger, while Justin Sun listed ETHW ahead of the fork on his Poloniex cryptocurrency exchange on Sunday. He said there had been a “high demand from the community” for the token when the listing is announced.

However, initial interest in Justin Sun and Chandler Gou’s EthereumPoW fork appears to be small relative to the size of the market, with only big miners and some small, mostly Asian cryptocurrency exchanges signaling potential support, according to EthereumPoW’s website, two of the major cryptocurrency exchanges, Binance and FTX, are also listed there, although neither company has expressed support for a fork.

Since the listing of ETHW by Poloniex, BitMEX has announced that it plans to list futures contracts for a potential Ethereum token based on the Proof-of-Work method. Users will be able to deposit Tether’s USDT as collateral and gain exposure to the token with up to 2x leverage.

Ethereum community denounces forking plans

As things stand, most users, protocols, and developers seem intent on sticking around and continuing to build on Ethereum and dismiss forking efforts as largely irrelevant. Speaking at a closed press conference before EthSeoul On Saturday, Ethereum co-founder Vitalik Buterin said that proponents of proof-of-work-based forking “own trades and just trying to make a quick buck“.

Meanwhile Chainlink, denounced plans to fork Ethereum. “Users should be aware that forked versions of the Ethereum blockchain, including PoW forks, will not be supported by the Chainlink protocol“, writes the company on its blog, citing the alignment with the desire of the Ethereum community to move to Proof-of-Stake. Without the support of established oracle providers, decentralized applications on EthereumPoW would likely struggle to scale and function properly.

Justin Sun and Chandler Gou nevertheless plan to fork Ethereum following the merger, without presenting any fundamental reason or possible benefits, other than the possibility of providing existing Ethereum miners with an alternative chain to mine. and keep making money. Chandler Gou voiced his support for the fork during an interview Saturday on Bloomberg saying that everyone “will be happy” because “everyone will get free money— hinting at the possibility of a token airdrop for current ETH holders.

Justin Sun, on the other hand, has already signaled a financial influx to the builders of EthereumPoW to support the perceived fundamental value of the fork. “We currently have over a million #ETH. If the #Ethereum hard fork is successful, we will donate a portion of the forked #ETHW to the #ETHW community and developers to build the #ethereum ecosystem“, did he declare. tweeted last Thursday, as Poloniex announced the listing of a Proof-of-Work token.

ETHW, the future native currency of the EthereumPoW chain, is currently trading at around $141, while Ethereum is trading at around $1,800.

To display Hide the table of contents

Leave a Comment