CRYPTO NEWS

ETHPoW Down By 40% – Should You Buy Now or Stay Away?

The long-awaited Ethereum Merge has barely seemed to have affected the price of Ethereum at the time of transition; however, the hard fork of the Ethereum blockchain, EthereumPOW, has experienced some ups and downs in its price movements since then.

During the transition, the price of Ethereum PoW (ETHPoW), an Ethereum hard fork supported by a set of Ethereum miners, skyrocketed. Then, a few hours later, it collapsed to record lows.

ETHPoW Price Analysis In Light Of The Merge

ETHPoW remains on proof-of-work (PoW) mechanism, when Ethereum has seen the transition to proof-of-stake. EthereumPoW describes itself as “the original Proof of Work Ethereum, developed and run by the community.”

Live price information from some crypto trading platforms shows that ETHPoW surged from about $30 at 21:30 UST on Wednesday to the price of $51.88 an hour later. The price gradually declined as soon as Ethereum’s Merge was publicly made formal. At around 4:30 on Thursday, ETHPoW went through a significant dump, dropping from $40 to $25 during the following hour.

At the time of writing, the price of ETHPoW is $6.03 with a 24-hour trading volume of $117,475,106. It has already come down by 13.28% in the last 24 hours. With its live market capitalization, CoinMarketCap presently ranks ETHPoW at 2658. Both the maximum supply and the circulation supply of this token are not available.

The price of ETHPoW is not currently based on the transaction of a real cryptocurrency. Instead, it is derived from trading data on a small number of specialized platforms in the style of an IOU of a currency that has not yet been launched.

BlockSec Finds Out The ETHPoW Token Replay Exploit

Recently, a replay exploit was discovered in EthereumPOW, the variant of the Ethereum blockchain that is supported on PoW consensus mechanism. After being properly informed of the concerns, EthereumPOW’s developers took urgent measures to sort things out.

Interestingly, replay exploit refers to the situation where same transaction is undertaken on both chains. This enables users to trick smart contracts into issuing tokens from one chain when the whole operation was executed on some other chain. For instance, if a person traded on Ethereum PoW, the same activity was conducted on Ethereum.

This entire incident of replay exploit happened on the Omni bridge of Gnosis network. Around 200 wETH were transferred across the bridge on Saturday, and a similar activity took place on the PoW network. Consequently, the hacker received 200 ETHPoW, which at that moment was equal to the value of $1,600.

The entire situation happened due to the misleading data from a Chain ID of the contract on the Ethereum PoW platform, as per the post from security firm BlockSec. Hardly a few days have passed since the PoW fork went live, and an initial exploit may have an effect on how widely it is accepted.

In addition, after the exploit was found, the token’s price got further decreased. According to CoinMarketCap, the news caused the value of the ETHPoW token to plunge around 40%, reaching a new bottom of $4.22 early on Monday.

Should You Purchase ETHPoW Now Or Hold On For A While?

Arcane Assets’ Chief Investment Officer, Eric Wall, claimed that ETHPoW miners were not able to support the network at the existing ETHPoW values. However, prominent cryptocurrency exchanges like FTX and Huobi listed ETHPoW. Additionally, BitTrue has launched a liquidity staking model based on ETHPoW that yields depositors 6% annually.

Though ETHPoW has not been able to live up to the expectations of its investors recently, however, it would be too early to pass any judgment on this hard fork version of Ethereum. Investors can wait for a while, see how the token performs in the coming weeks, and then make their investment decision by analyzing the performance of the token.

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BTC Reclaims Its 20K Spot After A Couple Of Bloody Weeks

After plummeting to significant lows in July, bitcoin has been locked in a sideways trading action angling towards higher prices. Still, investors are anxious to see what’s going to happen next.  Last week, the Federal Reserve’s decision to squeeze more US Dollars out of circulation with another interest rate hike sent BTC tumbling. After finding::Listen

After plummeting to significant lows in July, bitcoin has been locked in a sideways trading action angling towards higher prices. Still, investors are anxious to see what’s going to happen next. 

Last week, the Federal Reserve’s decision to squeeze more US Dollars out of circulation with another interest rate hike sent BTC tumbling. After finding support at the $18,000 psychological level, BTC surged 7% on the 27th of September in a tremendous display of volatility. As a result, the number one digital asset recovered to trading above $20,000 for the first time in over a week. 

Related Reading: Bitcoin 90-Day CDD Hits All-Time Low, What Does It Say About Market?

Differed Opinions on BTC’s Volatile Tuesday Run 

TradingView tracked the movement of BTC as it closed in the green by 7% on the 26th of September. Data from Bitstamp reported a price peak at $20,344 before it eventually settled at $20,200. 

As expected, the move seized the attention of many traders in the crypto bubble. However, people gave bipolar reactions to the news. Other comments warned investors to avoid making hasty, late entries influenced by the fear of missing out. 

Analysis from a user with a strong crypto presence on Twitter dismissed any hope of a market reversal just yet. Capo of Crypto believes there would be lower lows below $19,000 before we see any relief from the crypto winter. 

Bitcoin’s price again crashed to $19,000. | Source: BTCUSD price chart from TradingView.com
Will The Bulls Run The Bears Out Of The Market This Month?

BTC’s aggressive gains made September’s last Tuesday an eventful day in the crypto world. Besides users giving their varied points of view on the likely interpretation of the recent move, several crypto research firms cannot wait to jump in and give their perspectives. 

According to an on-chain analysis from Santient, the future of BTC’s price rests in the hands of the bulls. If they defend the $20,000 position till Friday, cementing September with a green close, a bright future awaits BTC price action. 

The crypto market data and analytics platform, Santient, also noticed a lot of users taking profits as soon as BTC crossed the $20,000 key level. It seems several traders set automatic and mentally-noted take profit signals at that mark. Santient also divulged a transaction log of users claiming profits and closing losses at the same price.

How September’s Ending Might Define The Future Direction of Crypto

Based on a tweet by Santient, reclaiming the $20,000 spot increases the odds of BTC closing higher than its starting point in September. And more importantly, finishing past this psychological level will have a hugely positive effect on investors’ sentiment.

September has been a slow month for the world-leading crypto. Despite the 7% gains on the 27th of September, bitcoin is currently making moderate monthly gains of 0.7%. That’s a heavy contrast to the day before, which left bitcoin trailing at a 6% loss according to monthly P&L data by CoinGlass. 

Related Reading: Ethereum Name Service (ENS) Looks Strong, Eyes $16 Reclaim

However, it is pivotal that BTC finishes above its September starting point, no matter how little the gains. BTC will record its first “September green” month since 2016 to finish this month in profit. 

As of writing, bitcoin has slightly slipped below $20,000 to trade around $19,150.

Featured image from Pixabay and chart from TradingView.com

ETHPoW Down By 40% – Should You Buy Now or Stay Away?

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