Prospects for Ethereum Classic. Why the cryptocurrency rose in price
Experts talked about investing in ETC and assessed the likelihood of miners switching to mining “classic” Ethereum. Based on the information below, you will be able to understand whether ethereum classic is a good investment or not.
Is ethereum classic a good buy?
Is ethereum classic a good buy? The cryptocurrency Ethereum Classic (ETH) is showing significant growth, having risen by 45% in the last month alone. On July 28, the rate of ETH reached $34, gaining more than 23% in one day. Ethereum Classic is currently ranked 20th in cryptocurrency capitalization at $4.61 billion with a daily trading volume of $5.26 billion.
The ethereum classic chart’s rise began after the announcement that the network would switch to a new operating protocol (Proof-of-Stakes) at the end of September. This transition will mean the end of ETH mining. Due to this event, and because the blockchain uses the same mining algorithm, ETH miners may start switching to ETC.
ETC appeared in 2016 because of the hard fork of the main Ethereum network. The reason for the blockchain branching was the hacking of The DAO investment project and the theft of about 3.6 million Ethereums from it, which amounted to about $60 million at the time (at the rate of July 28, 2022 – $5.76 billion). The developers of the Ethereum Foundation project have done a blockchain split to make up for the losses.
After the hardfork, the old network and cryptocurrency were renamed. The classic cryptocurrency community approved the basic principles of the altcoin, such as keeping the blockchain in its original form and decentralized. The project was first supported by major mining pool MinerGate; then cryptocurrency exchanges began to add the ETC altcoin gradually: Poloniex, Bitfinex, Kraken and others.
The interest of major players
ETC began to appreciate after the announcement that ETH would switch to the Proof-of-Stake (PoS) protocol in the fall. Token will remain the only major blockchain with smart contracts running on classic PoWand the Ethash mining algorithm after the core network moves to a different algorithm.
Miners will migrate to the ETC network because of the characteristics of the ASIC chips. The migration will theoretically strengthen the security of the network, which has been attacked several times. The developers of the fork are counting on the growing interest of smart contract holders, who will not want to migrate to PoS.
The Ant pool mining pool, affiliated with mining equipment maker Bit main, has invested $10 million in the ecosystem. It also intends to accept ETCs for payment for its products.
Thus, the industry partially moves its capacities to the assets, which will be “pumped”. It won’t be a surprise if in a bull market the price of ETC, supported by corporations, reaches $100+ and goes to historic highs.
For the near term
For holders of large-scale crypto farms, the “classic” PoW algorithm is more profitable than the new PoS to which the mainstream network is migrating. Traders consider in their assessments of the cryptocurrency that there are no plans to migrate to PoS in ETC and that mining in this system will be beneficial for the older people of the market.
There is a chance that investing in Ethereum Classic in the next 4-6 months will be profitable. However, according to Deyev, there is not enough data to analyze a longer period, despite the efforts of the creators of the crypto-monet to maintain it and attract computing power from other projects.
Ethereum Classic crypto price prediction: Waiting for the transition to PoS
It’s too early to talk about the mass transition of miners, but interest in ETC has clearly appeared. This is shown by the local maximum hash rate of the network.
Ethereum Classic crypto price prediction: now is a “great time” to enter mining profitably, but the demand for equipment at the moment is low, says the expert. According to him, only professional large miners are increasing their capacity, while the prices of video cards and ASIC miners are low.
Such mining has clear advantages over bitcoin mining: the net profit is higher due to lower power costs compared to ASIC equipment, especially during a bear market.
Hong Kong allocated another $50 million to the crypto industry
Hong Kong has allocated another $50 million to accelerate the development of the crypto industry after local authorities allocated HK$50 million (about $6.37 million) in late February to develop the Web3 direction. This is stated in a press release on the website of the government.
Legalization of cryptocurrencies in Hong Kong
According to the head of the Financial Services and Treasury Bureau of Hong Kong (FSTB) Christopher Hui, the pool of funds will be allocated, in particular, to organize major international Web3-events. Hui also said that the government will organize educational programs for young people, for which preparations have already begun.
In addition, the 2023 budget provides for the creation of a working group to focus on developing virtual assets and study the situation in the crypto market, development opportunities and the need for changes in regulation.
“Hong Kong is well positioned to become a leading hub for Web3 in Asia and beyond, and we attach great importance to virtual assets (VA) and Web3. The government is committed at a high level to developing this sector and providing a comprehensive support system for enterprises,” Hui said.
He added that the Hong Kong Monetary Authority (HKMA) is now working on regulating stablecoins to introduce them into the economy next year. The country also plans to improve securities regulations so that retail investors can access ETFs based on cryptocurrency futures.
Despite several personal initiatives, Hong Kong authorities are also working closely with mainland China, testing international payments in the digital currency and working with the Central Bank. In all, as of the end of February, more than 80 Chinese companies had expressed interest in operating in Hong Kong.
Bloomberg wrote about China’s support back in late February. The agency pointed out that after Hong Kong set out to develop the crypto industry last October, Chinese officials have become more frequent visitors to Hong Kong. According to sources, this interest is because Beijing wants to use the city as a testing ground for digital assets amid tight control of crypto activity on the mainland.
We previously reported that the collapse of the Silicon Valley Bank is spurring demand for crypto apps.
Tether printed for one billion dollars on the TRON network
Stablecoin issuer USDT is rapidly printing “digital dollars” in the TRON (TRC-20) ecosystem. This time, Tether printed another billion dollars in USDT, according to transaction details. The total number of USDT in circulation in the TRON ecosystem is over 42.1 billion USDT. By comparison, the Ethereum ecosystem issued significantly less – 34.2 billion USDT.
As TRONScan data shows, this is the second billion-dollar tranche issued by Tether for TRON. The last time the USDT-issuing company issued a similar amount of Stablecoin was on March 14. Since the beginning of 2023, this is the fourth transaction to issue such a large amount of USDT. As of 2023, the largest issuance occurred in February. At that time, Tether issued two billion dollars in USDT at once.
Amid the news, bitcoin barely reacted to the USDT pump. According to TradingView, the bitcoin (BTC) exchange rate in the BTC/USDT trading pair is $27,949, up just 1.4% overnight. Bitcoin has a market capitalization of $540.4 billion.
In early March, The Wall Street Journal revealed that Tether had opened bank accounts using fake documents and shell companies. It turned out that one of Tether’s Turkish accounts had been opened in the name of Denix Royal Dis Ticaret Limited Sirketi, which had previously been caught laundering money for a terrorist group.
Tether chief technology officer Paolo Ardoino ridiculed the publication on Twitter and said the WSJ’s information was untrue. Tether said it adheres to legal requirements to combat money laundering and terrorist financing, and uses KYC mechanisms of the highest level. Renowned cryptocurrency critic Molly White, for her part, said that The Wall Street Journal journalists couldn’t “just make this stuff up.”
We previously reported that major cryptocurrency exchanges have moved offshore.
Where are crypto exchanges registered? Major crypto exchanges have moved offshore
According to a report by platform CoinGecko, 21 of the 30 largest crypto exchanges (70%) are based in offshore financial centers – territories that want to attract companies from abroad through loyal laws and schemes with low or no taxation.
Analysts of the service note that offshore zones, as a rule, offer non-residents more financial services and on more loyal terms than “in the home country”.
Where are crypto exchanges registered? They choose islands
Seychelles, the Cayman Islands and the British Virgin Islands were among the most popular offshore locations for cryptocurrencies. These territories are also considered tax havens for many corporations.
Also, one in five Crypto exchanges in offshore locations (20%) are registered in the Seychelles. This jurisdiction has become home to many centralized exchanges. Among them, there are well-known major platforms such as OKX, KuCoin, and MEXC Global. Many companies are “moving” to the Seychelles because the Seychelles Financial Services Authority (FSA Seychelles) refuses to license and oversee activities or companies related to cryptocurrencies.
In total, according to CoinGecko, the top 30 cryptocurrency exchanges are listed in 15 different countries: 11 of the 30 platforms (37%) are in North America – mostly in the Cayman Islands, British Virgin Islands and the United States. The number of companies located in Europe, Asia and Africa is evenly split: 20% each (or 6 countries).
The number of companies offshore may grow
Because of stricter U.S. regulators’ policies toward cryptocurrency companies, many firms are having to move to more cryptocurrency-friendly countries.
For example, the Hong Kong government, to turn the state into a new crypto hub, has allowed retail investors to trade digital tokens such as bitcoin (BTC) and Ethereum (ETH). The Hong Kong authorities themselves admit that they want to create a “favorable environment” for developing the local crypto industry.
Also, Ras Al Khaimah, one of seven regions in the United Arab Emirates (UAE), is preparing to open a free zone for cryptocurrency companies. Entrepreneurs in these areas own 100% of their businesses and have their own tax schemes and regulatory frameworks.
We previously reported on the Top 5 low-cost AI tokens with huge growth potential.
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