CoinGecko Co-Founder Predicts Rise of Ethereum PoW Fork, Says Merger Could Trigger Volatility
The co-founder of a major crypto data aggregator predicts the emergence of new Ethereum (ETH) hard forks as the leading smart contract platform prepares for its highly anticipated upgrade.
CoinGecko executive Bobby Ong said current Ethereum miners are motivated to create a new proof-of-work (PoW) version of ETH once the altcoin king transitions to a proof-of-stake consensus mechanism, which should happen in about a week.
“Ethereum is going through an upgrade where it will move from proof-of-work to proof-of-stake. After the transition, ETH miners can no longer mine. Miners forge ETH to keep a PoW version so they can continue mining to exploit.
According to Ong, the new ETH PoW forks will likely airdrop tokens to current Ethereum holders.
“The Ethereum merger is expected to take place on September 13. The Christmas season is back. ETH holders will soon receive air-dropped ETH PoW tokens.
Ong also says that based on the history of Bitcoin (BTC) hard forks, it is possible that more than one ETH PoW fork could appear.
“We have about [six] days to go to fusion. I think many markets and protocols will become volatile, messy and complex, especially in the hours before/after the merger. One or more ETH PoW forks may appear. Dug up our old 2017 crypto report on Bitcoin forks and found this.
The CoinGecko co-founder points out that he does not plan to hold the ETH PoW tokens he receives.
“My strategy for these fork tokens is to sell them all immediately. Almost all fork tokens are now dead as they are created only to keep miners temporarily busy with mining and have no incentive to grow their community and usage.
He also says that amid the noise and volatility leading up to the merger, Ethereum traders might find a short-term opportunity.
“Buy the rumor, sell the fact… ETH will likely be bought back in the hours leading up to the merger and dumped immediately after. You can choose to sell ETH and profit from it afterwards.
At the time of writing, Ethereum is changing hands for $1,536, down more than 7% on the day.
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