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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