Merge may have launched without a hitch, but ETHPoW, Ethereum’s Proof-of-Work fork targeting miners, got off to a rough start. Factors such as rumors of a “replay attack” on the altcoin project have caused the coin to lose three-quarters of its value. Here are the details…
ETHPoW did not make a good entry to the market
cryptocoin.com As we have also reported, the Merge took place on Thursday, September 15, in the morning hours. Then, for those who want to continue using the proof-of-work consensus algorithm, the ETHPoW hard fork took place. But according to reports on Twitter, ETHW lost three-quarters of its value in the first 24 hours. Also, users are complaining about not being able to access the network using the information provided by the ETHPoW team.
Moreover, the network’s targeted users, miners, seem to earn only a tenth of what they earn while mining Ethereum. Ethereum got its biggest upgrade ever when it replaced the PoW consensus mechanism with PoW. The transition removed miners from the network, reducing the network’s energy consumption by 99.8 percent. ETH issuance also fell more than 87 percent.
The ETHPoW team has been criticized for delaying its launch until hours after Merge. Respondents said the delay was due to poor organization and various tool shortages. On Twitter, Igor Artamonov, a former Ethereum Classic developer, highlighted the project’s failure to prepare a block explorer, wallet, and general remote procedure call software long before launch. “They weren’t able to prepare their chain launches for Merge in a timely manner,” said Kieran Warwick, co-founder of Illuvium. “They had a unique chance and missed the momentum needed for a good launch,” he said.
Rumor of “replay attack” deals another blow to altcoin price
When ETHPoW released its network specs about eight hours after The Merge, users immediately reported that they were unable to access the network because the Chain ID (network ID) was currently being used by a different project. On top of that, people began to fear a “replay attack”. The attack refers to transactions on the forked chain becoming valid on both networks. That is, a transaction on the ETHPoW network can happen again on the ETH PoS network where it was forked.
However, PeckShield, one of the first security companies to draw attention to the replay attack, made a new statement. He stated that behind the situation in question, there is a smart contract problem. Apart from these, the difficult start of ETHPoW coincided with the bloodbath in the ETHW market. According to CoinGecko, ETHW has lost almost 20 percent of its value. Currently, the value of the cryptocurrency has dropped to $7.33 – this level from around $9.38.
Also, the figures show that the earnings of ETHW miners have dropped by 90% compared to when they were mining Ethereum. “No matter how you set the difficulty, there is no way for miners to continue mining the ETHPoW chain,” said crypto trader Eric Wall. “There isn’t enough reward in the system to pay the electricity bills,” he added.
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