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Huge Boost To Ethereum Forked Tokens As Grayscale Joins Bandwagon

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Digital currency asset manager Grayscale announced that its customers will now have access to Ethereum proof of work forked tokens. The company said Grayscale Ethereum Trust and the manager of Grayscale Digital Large Cap Fund acquired the tokens. Grayscale on Friday established a record date for the distribution of rights to the ETH proof of work tokens (ETHPoW). The tokens were received as a result of a fork in the Ethereum blockchain on September 15 following the Merge, it said.

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Grayscale Acquired Ethereum Forked Tokens

The asset manager said it would sell the forked tokens at a particular date. Grayscale customers will be able to buy the Ethereum forked tokens from September 26, it said. The firm also addressed issues concerning the validity of the proof of work tokens. It said there was uncertainty on whether the custodians would support the tokens. Grayscale also said there could be huge fluctuation in the token values if the custodians don’t support them.

In the event digital asset custodians do support ETHPoW tokens and trading markets do develop, it is expected that there will be widely fluctuating values for ETHPoW tokens for some time, it said in the announcement.

“The trading venues for ETHPoW tokens are not broadly established given that the Ethereum Proof of Work Network was publicly launched on September 15. There is uncertainty as to whether digital asset custodians will support ETHPoW tokens or if trading markets with meaningful liquidity will develop.”

ETHPoW Acceptance

Meanwhile, ETHW, which is supported by crypto exchanges FTX and Bybit, dropped heavily following the news of  the Merge completion on Thursday. Since the completion of Merge, ETHW dropped by more than 50% in value. As of writing, the hard forked token is trading at $12.08, down 35.63% in the last 24 hours, according to CoinMarketCap. On the other side, Ethereum (ETH) continues to follow the declining curve. As of writing, ETH price stands at $1,452.12, down 1.57% in the last 24 hours.

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Similarly, Ethereum Classic (ETC) failed to capitalize on the success of the historic network upgrade. With Ethereum switching to the proof of stake model, it was expected that miners would create demand for ETC after The Merge. As of writing, ETC price stands at $33.90, down 8.13% in the last 24 hours.

Anvesh reports major developments around crypto adoption and price analysis. Having been associated with crypto since 2016, he is now a strong advocate of decentralized technologies. Follow Anvesh on Twitter at @AnveshReddyBTC and reach him out at [email protected]
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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