This work has provided useful insights into understanding the Ethereum Classic coin and why it was created. Readers will find in this work the major reason why the Ethereum cofounder Vitalik Buterin endorsed the Ethereum Classic and the possible target for this coin given the Ethereum network upgrade.
Introduction
Given the ongoing Ethereum network upgrade from Proof-of-work (PoW) cryptocurrency to Proof-of-stake. The Ethereum co-founder Vitalik Buterin has publicly endorsed the Ethereum Classic (ETC) as an alternative Proof-of-work cryptocurrency on Ethereum Blockchain. Thus, reviving interest in the long-neglected Ethereum counterpart cryptocurrency created after the hack of Ethereum in 2016. The recent endorsement of the Ethereum Classic as an alternative to the Proof-of-work cryptocurrency on Ethereum Blockchain has caused the coin to pump massively in recent times rising from its low below $20 in June 2022, to a new high at $45 in July. This massive rise in the price of Ethereum Classic barely one week after its endorsement by Vitalik has made many investors eager to learn more about this coin; to determine if it is a good investment opportunity for them at the moment. To further satisfy the reader’s curiosity, this work has provided a deep insight into understanding the Ethereum Classic. When and why it was created, the reason for the endorsement, and the possible targets for this coin in the long term. New traders will also learn from this work how to buy the Ethereum Classic.
What is Ethereum Classic (ETC)?
Ethereum Classic (ETC) is an open-source, decentralized blockchain used in running smart contracts. It is the original Ethereum which was later relegated after the Ethereum network hack in 2016.
Why was the Ethereum classic created?
The Ethereum Classic was created in 2016 after the hack of the Decentralized Autonomous Organization (DAO) which runs its smart contracts on the Ethereum blockchain. It was created to compensate the investors who lost hugely after the hack of the original Ethereum network.
How was Ethereum Classic created?
Ethereum Classic is a split version of Ethereum which was created in 2016 after the Ethereum fork was hacked. It is therefore a second version of the Cryptocurrency we know today as Ethereum invented by the same Ethereum creators known as Vitalik Buterin and his team of Ethereum Foundation layers.
The Ethereum Blockchain was initially created as a single network for running smart contracts using ether. Its network soon spread like a wildfire attracting many investors to the platform who came to launch their new token on the platform.
From its creation, Ethereum had been designed to support Initial Coin Offering (ICO) on its network. This attracted more than 19,000 investors to establish their tokens on the network. In a short while over 12 million worth of Ethereum was already converted on the Ethereum network during the ICO.
Given the high volume of transactions carried out on the Ethereum blockchain after it hosted the DAO Coins launching, hackers soon found a way to access its smart contracts through bugging which enabled them to abscond with more than one-third of the DAO coins deposited on the Ethereum blockchain. This was a nightmare for all the early crypto investors at this point.
Given the so much distress caused to the affected investors at the early stage of Ethereum creation, the DAO community requested that the affected investors be compensated by recreating a new token for them. Not all members welcomed this decision. The dissidents argued that doing so will set the precedent for future hacking of the network which will go against the purpose of DEX creation.
However, over 96% of the DAO community voted to restore the network and compensate the affected investors. To this end, the Ethereum blockchain was split into two different networks. The old version of Ethereum which became dumped was given the name Ethereum Classic (ETC), and the new network was named the Ethereum we know today which uses ether as its utility Coin.
The old project which assumed the name Ethereum Classic was thereafter dumped by the community while greater attention was upfront given to the new network Ethereum. This has pushed the adoption of Ethereum to its current height while relegating the Ethereum Classic.
The best way to explain to new users what transpired between these two networks is to cite an example with the LUNA Coin which crashed in early April 2022. After the Luna network was bridged, its founder Do Kwon, in agreement with the community decided to create a new Coin to compensate old users who were largely affected. Hence, a new Luna Coin was created which maintained its old name LUNA while the old Luna (crashed version) was renamed LUNA CLASSIC (LUNC) and is still available at various exchanges today. It appears today that the old Luna project now LUNA CLASSIC (LUNC) has been dumped by the community and developers while embracing the new Coin called LUNA.
This is almost what happened in the case of Ethereum and Ethereum Classic in 2016.
This background will no doubt help the reader understand the reason for the recent decision by the Ethereum founder Vitalik Buterin to revive the abandoned project by endorsing it while seeking to upgrade the Ethereum network. We shall explore this in detail in the paragraphs that follow.
Why did Ethereum Co-founder Endorse Ethereum Classic?
In light of the recent decision to upgrade the Ethereum network from proof-of-work (PoW) cryptocurrency to proof-of-stake (PoS) cryptocurrency, Vitalik Buterin has considered it necessary to present to investors who prefer the proof-of-work (PoW) cryptocurrency an alternative on the Ethereum Blockchain which is the Ethereum Classic (ETC). While there are many reasons for the decision to upgrade the Ethereum network, an important point to mention is that this upgrade will in the end establish two different forms of cryptocurrency on the network. By this arrangement, the Ethereum Classic will now be the only Proof-of-Work cryptocurrency on Ethereum Blockchain while Ethereum itself becomes a Proof-of-Stake cryptocurrency. Therefore, by endorsing the Ethereum Classic as a “fine” PoW alternative to Ethereum, Vitalik Buterin has given investors who prefer using only the proof-of-work cryptocurrency on Ethereum Blockchain to an opportunity to divert their investments into the Ethereum Classic.
Is Ethereum’s Network potential upgrade realizable?
The Ethereum founders are currently working on upgrading its network from proof-of-work (PoW) Blockchain to Proof-of-Stake (PoW) and the team has given the time range to complete this as September 17, 2022. The current upgrade has raised many concerns among investors whether this upgrade is feasible and good for Ethereum’s future development. The Ethereum network upgrade to Proof-of-stake has been designed to reduce the high cost of transactions on the Ethereum network and increase its speed for executions. This will attract more projects to the Ethereum network.
A major advantage of the proof-of-stake network is its scalability which enables it to process transactions at greater speed with lower fees. The proof-of-stake network consumes less energy, this makes proof-of-stake cryptocurrencies more eco-friendly. Building new projects on the proof-of-stake network is always very easy.
Nevertheless, the Proof-of-work cryptocurrency which is now represented by the Ethereum Classic has got its own advantages too. The most important being a strong security of assets run on this network. It also allows users to earn some reward while working on this Blockchain.
How will Ethereum’s Network Potential Upgrade affect the Ethereum Classic?
Given that both Ethereum and the Ethereum Classic are hosted on the same Blockchain. There is currently wild speculation by analysts that investors who prefer to utilize the Proof-of-work cryptocurrency will diversify their investments into the Ethereum Classic.
Hence, many analysts have forecasted a high price target for the Ethereum Classic after the network upgrade for Ethereum is completed. This also explains the reason for the massive pump witnessed for this coin in July after its endorsement by the Ethereum founder Vitalik as an alternative cryptocurrency with a Proof-of-work mechanism to satisfy the quest of Ethereum users who insist on using the Proof-of-work cryptocurrency for their transactions.
Ethereum Classic turns bullish after the endorsement: Will the bullishness continue?
There has been a general argument by Investors on the possible price target for Ethereum Classic after the pair turned bullish last month following its endorsement by the Ethereum co-founder Vitalik. While some consider the pump a mere reaction to the endorsement, others still believe that the pump has just forecasted what is to be expected from this pair after the Ethereum network upgrade.
Come what may, all cryptocurrencies are subject to the law of demand and supply. Hence, the bullishness for the Ethereum Classic can only continue if the demand persists. Otherwise, the coin will have to follow other coins in obeying the crypto market trend.
Where can I trade Ethereum Classic?
Ethereum Classic can be traded on registered crypto exchanges operating in one’s country where it has been listed among the tradeable Cryptocurrencies. We have further provided the list of the best twenty Crypto exchanges where the Ethereum Classic has been listed for buying and selling.
List of Best Twenty exchanges to trade Ethereum Classic
- Binance
- Kucoin
- Huobi Global
- OKX
- XT.Com
- MEXC Global
- Gate.io
- Digifinex
- Bitforex
- Bitfinex
- Latoken
- Bittrex
- BTCMarkets
- Bybit
- Bitrue
- Coinbase
- Kraken
- eToro
- Crypto.com
- WazirX
How to buy Ethereum Classic
There are four major steps to follow to buy Ethereum Classic successfully today. These steps have been discussed below:
- Create an account with your preferred exchange: Not all exchanges have the Ethereum Classic listed on their platform. Hence, the trader needs to choose from the list of those exchanges that have listed Ethereum Classic on their platform and create an account with the exchange.
- Complete the Verification Process: Most exchanges require additional information from the trader to strengthen the security of their platform. Hence, after the initial registration, the trader will be requested to upload his identity documents including his proof of citizenship and passports.
- Fund Your account: After successful verification of the trader’s identity, the next step is to fund one’s account using any of the options provided by the exchange. Often most exchanges provide multiple options to make the funding process very easy for the trader.
- Place your order: Upon a successful transfer of funds to one’s trading account, the trader can now proceed to the spot trading position and place a buy order once he clicks on the Ethereum Classic.
What is the forecast for Ethereum classic in 2022
With the recent endorsement of Ethereum Classic by the Ethereum founder Vitalik, many analysts have predicted that the door has been opened to new price discoveries for this coin. Many enthusiastic crypto traders have predicted that Ethereum Classic will replace Ethereum in the future being itself the original Ethereum created before the hack.
However, not all agree with this idea. Some believe that the minimum target for this coin should be a retest of its all-time high in 2021 created at $179.83. Others believe it will surpass this to reach a new all-time-high above $200.
Come what may, all the forecasts made are all intelligent speculations and there is no guarantee that the price will reach these levels.
All cryptocurrency investments involve risk and traders are expected to manage their risk properly.
Is Ethereum Classic a good investment package?
It is hard to classify any Cryptocurrency investment as a good investment package. This is because of the risk involved in all crypto investments. For instance, the Ethereum network was hacked at the early stage of its creation in 2016 and the quest to remedy the situation gave rise to the creation of the Ethereum Classic.
While the network has been resilient since then, there is no assurance that it has become a trusted investment package.
Nevertheless, there has been an increased demand for the Ethereum Classic among investors in recent times. It is based on this increasing demand for the coin that analysts have predicted higher price levels for this coin in 2022.