Cryptocurrency exchange Poloniex has started trading two tokens ETHS and ETHW predicting for the scenario that Ethereum will be chained after The Merge event.
Poloniex Starts Trading 2 Ethereum Hard Fork Tokens
On the evening of August 7, Poloniex said that it had opened trading for two tokens ETHS and ETHW, predicting the outcome of Ethereum’s The Merge upgrade event in September.
As was updated in a recent Coincu News article, Poloniex for the first platform allows investors to “choose sides” on the hypothesis of whether Ethereum will split the chain after The Merge, forming a chain that will continue to maintain Proof-of-Work next to the chain that will switch to using Proof-of-Stake.
Accordingly, ETHS will represent tokens of the Proof-of-Stake chain, while ETHW will represent the Proof-of-Work chain. The total value of both will be 1, representing the right to redeem 1 ETH at the present time.
At launch, Poloniex will list the following trading pairs for both coins: ETHS/ETH, ETHS/USDT, ETHS/USDD and ETHW/ETH, ETHW/USDT, ETHW/USDD. The exchange will free trading for all the above pairs.
At the time of writing, the ETHS/ETH rate is 0.93, overwhelming ETHW/ETH’s 0.07. This shows that most investors consider the probability of the appearance of the Proof-of-Work chain to be not high. This is also reflected in the USD value of the two coins, when the ETHS price is as high as 93% of the ETH price.
Before The Merge event, Poloniex will capture the balance of all accounts containing ETHS. After Ethereum conducts this upgrade, if a chain split occurs, the exchange will convert ETHS to ETH using PoS at a 1:1 ratio for all users.
Meanwhile, the Ethereum chain using Proof-of-Work with the highest hashrate will be chosen by Poloniex as the “mainstream” blockchain to be converted to ETHW. It can be seen that Poloniex has also prepared for the scenario where more than one Ethereum chain using PoW appears.
Conversely, if The Merge happens smoothly and no unit splits the Ethereum chain to retain Proof-of-Work, ETH will continue to be traded normally on the exchange, two ETHS and ETHW coins will be cancel.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Foxy
CoinCu News
