Popular cryptocurrency trader and analyst Tyler Swope has announced that it is buying as much Ethereum as possible through Bitcoin while expecting the second largest cryptocurrency by market capitalization to undergo a chain split that tosses tokens for holders.
In a recently released video first reported on by Daily Hodl, Swope told his subscribers on YouTube that he expected a controversial upcoming upgrade to the network would result in a hard fork that would split the network in two, much like the one with the one Bitcoin chain split in August 2017 that created Bitcoin Cash.
The controversial upgrade would come through the Ethereum Improvement Proposal (EIP). 1559 This “burns” transaction gas charges by default and allows users to include an optional tip paid to miners. It has been packed with The London hard fork is expected to hit the market in July.
The controversial proposal has led miners to crack down on it as their revenues would decline. Despite the campaigns, the cryptocurrency developers decided to proceed with it, including a delay along with the EIP the so-called difficulty bomb. The EIP 1559 is supposed to reduce the circulating offer of ETH and at the same time solve some usability problems.
Swope added that when Ethereum splits, current token holders will receive air-dripped tokens on the newly created blockchain which they can then sell in the market. He said: “If it follows from the Ethereum backbone for demonstrating the work we all know, love and use today, you get the fork 1: 1 when you hold ether.”
While Bitcoin Cash is now lagging behind Bitcoin, BCH rebounded shortly after the hard fork. It was later split up to create Bitcoin SV (BSV), which further increased the payouts of Bitcoin holders at the time when they sold the forked tokens.
Swope wondered if a hard fork from Ethereum would be similar to distributing free tokens to ETH holders, but some analysts believe the upward trend might not be that big. Pete Kim, founder of the Ethereum mobile wallet cipher browser, later acquired by Coinbase, argued that only a chain chosen by stablecoins would have value:
– Pete Kim (@petejkim) March 17, 2021
Others argued that the price of the air-dripped token would likely drop after stablecoins chose a blockchain, as automated market makers, which included USDC and USDT, would “add billions of dollars of instant selling pressure” to the token.