ETHPoW, a forked proof-of-work (PoW) blockchain from Ethereum’s Merge, was launched on September 15. However, the chain experienced technical issues after its launch, which put pressure on its ETHW token.
ETHW Price Drops 65% After “ChainID” Fiasco.
The price of ETHW has fallen 65% since the launch of ETHPoW to around $14 on September 16, according to CoinMarketCap. At the low, the token was trading at $9.50.
The losses coincided with a technical issue with ETHPoW’s ChainID.
ChainIDs are identifiers that help users identify one blockchain from another. Therefore, ETHPoW needed a new ChainID to separate its transaction data from the original Ethereum blockchain after the Merger, or else risk creating duplicate transactions.
Lol EthPow miners are set to wrong chainID, so they are mining testnet https://t.co/IichaPURjr
— David Trrrrr (@daveytea) September 15, 2022
Lol EthPow miners are set to the wrong id string so they are mining the testnet https://t.co/IichaPURjr — David Trrrrrrr (@daveytea) September 15, 2022.
The team behind ETHPoW announced on September 15 that its unique chain ID is 10001. However, data from Chainlist shows that a cryptocurrency project called Smart Bitcoin Cash, operating under the ticker BCHT, has the same ID . This issue caused errors in the MetaMask cryptocurrency wallet.
ETPoW acknowledged the issue and corrected the identification string later on September 15. However, some miners seem to have pulled out, although some large pools continue to mine the PoW chain.
Notably, the ETHPoW hash rate dropped to 66.64 TH/s on September 16 after peaking at 80.56 TH/s earlier in the day.
In comparison, the hash rate of Ethereum Classic (ETC), a PoW alternative for Ethereum miners, was 234.56 TH/s on September 16, down from a peak of nearly 310.5 TH/s the day before.
ETHW is listed on several exchanges despite concerns
Eric Wall, chief investment officer of cryptocurrency investment firm Arcane Assets said Note that ETHPoW miners could not support the chain at current ETHW prices. He explained:
“The daily rewards are 13100 ETH, or $354k instead of $20m. There is no way for miners to “keep mining” the ETHPoW chain no matter how you adjust the difficulty. There are not enough rewards in the system to pay the electricity bills.”
Also read: Dogecoin becomes the second largest PoW cryptocurrency
However, ETHW is listed on several top cryptocurrency exchanges, including FTX and Huobi. In addition, there is also BitTrue was introduced an ETHW-based liquidity pledge service that offers depositors a 6% annual return.
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