ETHW — a token relating to a proposed hard fork of the Ethereum ETH/USD blockchain — lost 53% of its value in seven days.
What happened: EthereumPoW or ETHW started trading as an IOU token on several cryptocurrency exchanges last week. The token has gained traction after some market participants advocated for another fork of the Ethereum blockchain to maintain the proof-of-work consensus as the network transitions to proof-of-stake on September 15.
ETHW was listed on the IOU markets of Poloniex, Gate.io and MEXC and quickly gained liquidity as a speculative bet against ETH PoS.
— HE Justin Sun (@justinsuntron) August 8, 2022
Reaching a high of $141.63 on August 8, the token has lost 53% of its value over the past seven days. At press time, the IOU token was trading at $65.98, down 7.53% in the past 24 hours.
— Ethereum Classic DAO (@EthClassicDAO) August 5, 2022
ETHW has been dubbed a “money grab” by ETH and Classic EthereumETC/USD proponents who doubt that the potential new chain will successfully capture the value of ETH post-merger.
See also: PROOF OF PARTICIPATION VS PROOF OF WORK
The project’s website says it has gained support from major mining pools like Poolin, Flexpool.io and f2pool. If ETH miners end up committing hash power to mine the forked chain, the ETHW token and underlying chain could see the light of day.
Price action: At press time, ETH was trading at $1,931, down 2.95% over 24 hours according to data from Benzinga Pro. ETC was trading at $41.23, down 6% over the same period