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This Crypto Billionaire Doesn’t Support The Ethereum Merge — What This Means For ETH

Most in the industry are looking forward to the Ethereum merge. Justin Sun isn’t one of them. 

Covered:

  • Hard Fork Planned By Miners
  • Justin Sun And What This Means For Ethereum

Hard Fork Planned By Miners

A group of Ethereum miners, mainly based out of China, have proposed a hard fork of Ethereum when the smart contract protocol moves to proof-of-stake (PoS) consensus. The proposed hard fork is currently being referred to as EthereumPOW.

The Ethereum merge is largely supported because proof-of-work (PoW) consensus has made it difficult to maintain or bring in new users to crypto thanks to high gas prices and slower transaction speeds. Not to mention, the PR around the environmental impacts of PoW make it difficult for corporate initiatives into the NFT and play-to-earn space.

The idea of a hard fork isn’t surprising in this situation. The move from PoW to POS for Ethereum means that many miners will see their business model change. PoS staking rewards more APY based on how much of a token you have, meaning it’s lucrative to have a lot of ETH in the bank. With PoW, earning ETH didn’t require keeping it.

Miners are often forced to sell what they earn because equipment (like GPUs) and the power are expensive. Also, any equipment they’ve bought isn’t necessary and a sunk cost now. So the incentive is out there.

But the question is why is the infamous Justin Sun getting involved?

Recommended: What Is Tron?

Justin Sun And What This Means For Ethereum

“We currently have more than 1 million ETH,” Sun said in a Thursday tweet. “If Ethereum hard fork succeeds, we will donate some forked #ETHW to #ETHW community and developers to build Ethereum ecosystem,” Sun said via Twitter.

Sun is the founder of Tron, which is a smart contract protocol that’s already on PoS. For whatever reason, he’s decided to support the miners. It can’t be because he’s worried about the competition from Ethereum because that would be self-flattery — Tron is akin to an actual ghost chain.

Though, where Tron lacks in development heft or an actual community, it makes up for it with Sun’s mysterious billions. For whatever reason, Sun has made it big in crypto without being particularly innovative — then again he wouldn’t be the first to stake claim to that. Nevertheless, that money is for real and it talks. For example, the Tron-supported crypto exchange Poloniex is also supporting the hard fork.

What does this mean for Ethereum? Should Vitalik and co. be shaking in their boots? Absolutely not.

Sure, PoW miners will get a development boost from Sun, but the only ones sticking around will be miners. Developers have little incentive to want to develop on a proof-of-work chain if it means bad PR, expensive gas fees, and slow transactions. It’s just bad for business for everyone, but the people who poured thousands into GPUs.

It’s unfortunate, but maybe they could use some of those Sun bucks to cash out.

Recommended: Everything You Need To Know About Ethereum 2.0

The post This Crypto Billionaire Doesn’t Support The Ethereum Merge — What This Means For ETH appeared first on CryptosRus.

New Yorkers Affected By The Cryptocurrency Crash Requested to Contact Attorney General’s Office

In a press release dated August 1, 2022, New York Attorney General Letitia James issued an investor alert calling upon New Yorkers who have been deceived or affected by the cryptocurrency crash to contact her office. A statement from the NY Attorney General read: “The recent turbulence and significant losses in the cryptocurrency market are::Listen

US Post Office Patents A Novel Blockchain-Backed Mail-In Voting System

In a press release dated August 1, 2022, New York Attorney General Letitia James issued an investor alert calling upon New Yorkers who have been deceived or affected by the cryptocurrency crash to contact her office.

A statement from the NY Attorney General read: “The recent turbulence and significant losses in the cryptocurrency market are concerning,” said Attorney General James. “Investors were promised large returns on cryptocurrencies, but instead lost their hard-earned money. I urge any New Yorker who believes they were deceived by crypto platforms to contact my office, and I encourage workers in crypto companies who may have witnessed misconduct to file a whistleblower complaint.”

This is not the first time that Attorney General Letitia James has reminded New Yorkers about the risks of investing in cryptocurrencies. She has also repeatedly called for regulation of the crypto industry.  

In June 2022, the New York Attorney General issued an investor alert to New Yorkers about cryptocurrency investments. “Over and over again, investors are losing billions because of risky cryptocurrency investments. Even well-known virtual currencies from reputable trading platforms can still crash, and investors can lose billions in the blink of an eye. Too often, cryptocurrency investments create more pain than gain for investors. I urge New Yorkers to be cautious before putting their hard-earned money in risky cryptocurrency investments that can yield more anxiety than fortune.”

In March 2022, James released a taxpayer notice reminding crypto investors to accurately declare and pay taxes on their virtual investments to avoid penalties. The statement read: “Crypto investors, just like working families and everyone else, must pay taxes”.

James further stated that: “Cryptocurrencies may be new, but the law is clear: Investors must accurately report and pay taxes on their virtual investments. My office is committed to holding cryptocurrency tax cheats accountable. Paying taxes on crypto transactions is not optional, and investors who skirt the law can face serious consequences. I encourage all crypto investors to follow guidance from the IRS and the New York State Department of Taxation and Finance to make sure their filings are accurate. Don’t evade the law, pay your taxes.”

Earlier in October 2021, James directed unregistered crypto lending platforms to cease operations in New York. James said: “Cryptocurrency platforms must follow the law, just like everyone else, which is why we are now directing two crypto companies to shut down and forcing three more to answer questions immediately”. 

James further said that: “My office is responsible for ensuring industry players do not take advantage of unsuspecting investors. We’ve already taken action against a number of crypto platforms and coins that engaged in fraud or that illegally operated in New York. Today’s actions build on that work and send a message that we will not hesitate to take whatever actions are necessary against any company that thinks they are above the law.”

As federal efforts continue for crypto regulation, some US states are already taking measures to ensure compliance of players within the crypto space and continue to educate and advise the public on the matters relating to crypto assets.

This Crypto Billionaire Doesn’t Support The Ethereum Merge — What This Means For ETH

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