BitMex Is The Latest Exchange To FOMO Hard Fork Ethereum
The BitMEX exchange plans to provide leveraged exposure for ETHPOW – a potential Ethereum fork that does not yet exist. The plan is based on a potential hard fork effort to retain the Ethereum PoW chain after The Merge event in September.
Starting Tuesday, traders will be able to secure loans up to 2x leverage on Tether (USDT ERC-20)-ETHPOW margin contracts, according to the BitMEX blog.
There are several differences between the ETHPOW contract and other futures contracts. For example, they will use the Last Price label to fill in a coin’s observable price gap and establish a maximum and minimum bid limit that traders can place around that price, which is updated hourly.
BitMEX also states that the contract includes a higher risk of automatic de-leverage as the contract is “purely speculative” at this time.
“This is a highly speculative contract (ETHPOW doesn’t exist yet and might never exist),” reads the announcement.
The growing Ethereum PoW campaign was promoted by Chandler Guo – an influential Ethereum miner – last month. According to former BitMEX CEO Arthur Hayes, Guo and other “serious individuals” in the Ethereum mining community are actively discussing how to effectively coordinate the fork.
After years of delay, The Merge has finally been scheduled for September 19. The event will convert Ethereum’s mainnet consensus from PoW to PoS, transforming the method of network security to reduce energy consumption.
In other words, the Ethereum mining industry will shut down, incentivizing participants to push for a chain split.
In a blog post from BitMEX Research last week, analysts expressed doubts about the long-term viability of the ETHPOW chain but acknowledged that it could present a “short to mid-term” trading profitable.
Furthermore, Ethereum co-founder Vitalik Buterin recently noted one problem that Ethereum hard forks may face in the future: a lack of cooperation from stablecoin issuers.
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