The head of cryptocurrency aggregator CoinGecko, referring to the history of Bitcoin forks, warned that the mining community is capable of creating a lot of “useless PoW ETH.”
Bobby Ong stated that too many Ethereum miners are interested in creating a new proof-of-work (PoW) blockchain after the main altcoin’s transition to a proof-of-stake (PoS) consensus mechanism.
The CEO of CoinGecko, referring to the history reflected in the Bitcoin hard forks report, is concerned about the potential chaos in the crypto market:
“We have a few days before the merger. I think that many markets and protocols will become unstable, confusing and complex, especially in the hours before and after the merger. One or more ETH PoW forks may appear.”
Ong added that teams launching new ETH PoW forks will most likely be giving away tokens to current Ether holders.
The co-founder of CoinGecko emphasized that he does not plan to store the ETH PoW tokens that he may receive.
“My strategy for these fork tokens is to sell immediately. Almost all fork tokens are now dead, as they are created solely to ensure that miners are temporarily busy mining, and they have no incentive to expand their community, ”the businessman explained.
At the same time, Ong urged Ethereum traders “amid the noise and volatility” before the merger to find a short-term opportunity to earn:
“Buy on rumors, sell on facts. ETH is likely to be bought hours before the merger and sold right after. You can sell ETH and make a profit.”
Recently, analytics firm Chainalysis has suggested that after switching to PoS, Ethereum will attract more institutional investors as the network will offer more attractive yields.
Source: Bits
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