Ethereum Classic’s three value propositions

Rage Comment : After the Ethereum blockchain hard fork, the original Ethereum network and the new network Ethereum Classic coexisted. A group of developers who adhere to the core values ​​of blockchain formed Ethereum Classic and issued an independent cryptocurrency ETC. As a complete currency, it attracted a group of people who missed the investment opportunity before; and the similarity with the original Ethereum is also a way to stick to the Ethereum model. However, although the price of ETC has soared, not everyone supports it. It is still impossible to predict the final outcome of these two networks.

Translation: Annie_Xu

Ethereum Classic should not exist.

In order to transfer the stolen funds of The DAO to new accounts controlled by investors, the Ethereum blockchain executed a hard fork at the beginning of last month, after which the historical transaction records became history.

Like most ethereum developers, exchanges, startups and other members of the nascent space, the project adjusted. A few days later, things returned to normal.

But not everyone wants the original record to be forgotten.

A small group of miners used the original blockchain to protest what they called a bailout of a bankrupt project.

The protest movement began to gain momentum when exchanges began listing the cryptocurrency Ethereum Classic (ETC). Now people with different intentions have joined the movement, and ETC now has a market value of $150 million, ranking sixth in the cryptocurrency field.

But where does the value of ETC come from? Will it replace Ethereum in the long run?

Based on interviews with players in the space and posts across multiple social media platforms, ETC’s value leaders can be divided into three broad categories.

Moral Values

The reason for the existence of ETC is that most Ethereum community members are very worried about the impact of hard forks, so they invest their mining power in an almost abandoned blockchain.

Although both networks currently function identically, the presence of an unmodified ledger has proven to be powerful enough for developers to actively maintain the blockchain.

Arvicco, the organizer of the ETC project, said that after the blockchain fork, Ethereum gave up its original attractive values. He pointed out that these values ​​played a role in decision-making and explained why a community was formed around such values.

“We in the Ethereum community are lucky because there is an alternative. Instead of abandoning Ethereum, they decided on their own to move into an independent Ethereum with a different value proposition.”

After seeing the size of the new market, some investors seem to agree.

Strategic Value

But for everyone who believes in the value of ETC, others are eyeing the benefits of this system split.

Last week, after the digital currency exchange Poloniex listed ETC products, the price soared three times in 24 hours. Chris Burniske, blockchain project director at Ark Invest, said that this surge in price and attention brought another value proposition.

Chris Burniske

He explained that the ETC/BTC trading pair has had the best liquidity in recent days, so large traders believe they can influence ETC.

While one form of this impact is the ability to shift ETC markets, he noted that one reason for this liquidity in the trading pair could be that some Bitcoin investors are “trying to undermine Ethereum in favor of the ETC blockchain.”

Burniske said:

“This creates competition between Ethereum and Bitcoin.”

Investing in the new cryptocurrency ETC sows instability in Ethereum and is also a way to emphasize Bitcoin’s value proposition.

Value of missed opportunity

In July 2014, Ethereum founder Vitalik Buterin launched a crowdfunding campaign to sell platform tokens at a price of 2,000 ether to one bitcoin. The current exchange rate between the two is 1 bitcoin to 50 ether.

For those who are still thinking about missing out on potential investment opportunities, ETC is an attractive option.

ETC’s trading volume in the first 24 hours was the second highest in the cryptocurrency space, with $22 million in trading across the top ten trading pairs.

What is value?

Of course, as the possibility of a 51% attack gradually increases, only a small number of developers will build applications on ETC, and not everyone thinks ETC is valuable.

Bitcoin core developer Peter Todd said that he has no plans to invest in ETC, nor will he destroy Ethereum or look for new profit points.

His blog reads:

“I will not be adding ETC to my long list of missed trading opportunities.”