Ethereum Classic Price Rises To $ 150 On Coinbase Pro

Ethereum Classic (ETC) has joined the list of cryptocurrencies experiencing explosive growth in recent days. On April 15, ETC reached a local high of about $ 40, but today it is already trading at $ 100. On Coinbase Pro, one of the leading cryptocurrency exchanges, the price climbed to $ 150.

Ethereum Classic emerged from the fork of the Ethereum blockchain in 2016. This happened after the infamous attack on the DAO project, when 3.6 million ETH worth $ 50 million at the exchange rate at that time was stolen. Most of the developers and other ecosystem participants supported the option of changing the transaction history in order to eliminate the consequences of the hack. However, this approach was not shared by everyone – opponents of the proposal preferred to stay in the “classic” version of the Ethereum blockchain.

Why haven’t traders taken advantage of the arbitrage opportunity and transferred ETC from other exchanges to Coinbase to capitalize on the rate difference? The point is, depositing ETC on Coinbase is not easy. This exchange requests 10,000 confirmations from the ETC network before crediting a deposit to a user’s account. She took such measures after the last year Ethereum Classic was subjected to several 51% attacks. In the course of these attacks, the attackers managed to rewrite the transaction history and exchange unreasonably received coins on exchanges, and then withdraw assets in another cryptocurrency. The block time on the ETC network is 13 seconds. Thus, it will take 36 hours to receive your ETC deposit on Coinbase. By comparison, Filecoin is the next highest number of confirmations on Coinbase’s list, with a value of 60. Initially, Coinbase increased the confirmation time for transactions with ETC to two weeks.

The ETC to ETH rate has climbed more than 500% since February this year, despite the impressive results of the second cryptocurrency.

 

“Vitalik Buterin vs. Barry Silbert?” – writes Ikigai fund manager Travis Kling.

 

Ex-banker Silbert is the founder of the Digital Currency Group, which, among other things, owns the world’s largest digital asset manager, Grayscale Investments. He bet on Ethereum Classic early in the existence of the cryptocurrency at a price of about 50 cents, explaining that the ratio of risk and reward in this investment seemed “right” to him.

 

“It will be funny if the price of ETC equals ETH,” Silbert wrote in a comment on Kling’s post.

 

 

 

“Mining Ethereum and Ethereum Classic are now doing roughly the same profitability,” said Will Foxley of Compass mining company. “This is remarkable considering where Ethereum Classic was a year ago: trying to recover from multiple 51% attacks, low practical value and a split among key developers.”

 

Ethereum Classic is becoming more interesting for miners also in light of the changes awaiting Ethereum. In the summer, the EIP-1559 proposal will be activated on the blockchain of the second largest cryptocurrency, which provides for the burning of most of the commissions paid by users, and in the longer term it will switch to the Proof-of-Stake consensus mechanism. The Ethereum Classic community decided not to support the latest changes to Ethereum, although they used to use the results of works from a sister blockchain that is superior in resources to developers.

 

“Let’s see if the price of Ethereum Classic will hold, in particular as EIP-1559 approaches in the broader Ethereum ecosystem and the merger with Eth 2.0. If the price holds, it could be a salvation, albeit a weak one, for miners who have invested large sums in GPUs, ”added Foxley.

 

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