With Ethereum’s long-awaited move towards proof-of-stake finally approaching, cryptocurrency exchanges are weighing whether to support a growing effort to resist the transition.
Today another stock market: decided the move would be worth it.
Singapore-based cryptocurrency exchange Bitrue announced today that it will support a token linked to ETHW – the proof-of-work version of Ethereum that will try to create “fusion resistances” when forking the Ethereum blockchain on the time of the merger.
The Ethereum merger, expected to take place on or around September 15, refers to a protocol update that will combine the Ethereum mainnet with the proof-of-stake beacon chain — the latest step in the network’s transition. . This change also marks the end of mining on Ethereum, which ETH miners don’t like very much, hence the growing calls for a hard fork that would maintain the status quo.
Through an exchange and IOU mechanism, Bitrue will make an ETHW token available to all current ETH holders on its platform. The exchange, which is the 20th largest cryptocurrency exchange in the world according to data from CoinGecko and accounts for more than $1.5 billion in trading volume in 24 hours, will also create a token representing the new version of ETH in proof-of-life. stake mode that will exist if and when the merger happens later next month.
Both tokens will be available before the merger; If the hard fork planned by the resistance fighters is unsuccessful and the ETHW never materializes, all ETHW on Bitrue’s platform will be automatically converted to ETH after the merger, proof-of-stake.
“Bitrue has always been about providing users with unparalleled choice,” Adam O’Neill, Bitrue’s Chief Marketing Officer, said in a statement to Decrypt. ” [Cela] can be seen not only in the thousands of trading pairs currently available on the exchange, but also in our efforts to offer unique and unprecedented financial products. »
In recent weeks, other cryptocurrency exchanges, including Justin Sun’s Poloniex, Huobi, and BitMEX, have all launched ETHW-affiliated financial products. Binance, the world’s largest cryptocurrency exchange by volume, has not ruled out supporting ETHW.
However, other major cryptocurrency firms, including Circle and Tether (suppliers of the two largest stablecoins, USDC and USDT, respectively), have indicated their refusal to support ETHW in any form.
The campaign to create ETHW began earlier this month at the request of prominent Chinese cryptocurrency miner Chandler Guo. Guo and other cryptocurrency miners have so far made significant profits mining Ethereum through an energy-intensive process that involves putting massive amounts of computing power into puzzles that are difficult to solve.
However, the merger will end ETH mining by shifting Ethereum to a faster and more scalable proof-of-stake model, in which new ETH is created by capturing large amounts of pre-existing ETH.
Guo and other miners hope that by forcing or splitting the Ethereum blockchain at the merger, they will retain the ability to mine Ethereum (although it is a different form of crypto change).
Many experts have previously told Decrypt that it is highly unlikely that ETHW will approach the market value of Ethereum, which would significantly limit the potential profitability of mining the new cryptocurrency. For these experts, the only thing ETHW can likely achieve is to undermine the legitimacy of the merger in the near term.
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