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Coinbase will consider listing Ethereum forks after the merger

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Coinbase will consider listing Ethereum forks after the merger

With the long-awaited Ethereum merger just around the cornercrypto exchanges must now decide whether to support a controversial attempt to resist transition.

On Thursday, the largest US crypto exchange signaled that it might be willing to do so.

Coinbase will consider listing bifurcatedproof-of-work versions of Ethereum as they arise post-merger, the company announced in a blog post.

At Coinbase, our goal is to list all legal and safe assets to list, in order to create a level playing field for all new assets created in crypto while continuing to protect our customers,” the company said, in a part. update to a statement first issued on August 16. “If an ETH PoW fork occurs after the merger, this asset will be scrutinized with the same rigor as any other asset listed on our exchange.”

The company had previously remained mum about forked Ethereum support tokensand expressed support for the new, proof of stake model of Ethereum is expected to be created by next month’s merger.

This new staked Ethereum is what will fuel the upgrade, more low consumption proof-of-stake network. But it will also end the practice of proof of work ETH mining. Currently, ETH is created through a power-intensive process in which so-called miners direct massive amounts of computing power into hard-to-solve puzzles, in hopes of obtaining newly minted blocks of ETH.

In an effort to preserve the practice of mining ETH post-merger, a prominent Chinese crypto miner recently launched a campaign to fork or split the Ethereum network during the merger and, in doing so, create an alternate and still exploitable version of Ethereum running on proof of work. This forked, proof-of-work version of ETH is called ETHW.

Since this campaign began earlier this month, several crypto exchanges, including that of Justin Sun Poloniex, Houbi, BitMEXand Bitrue– began listing ETHW-affiliated financial products, such as exchange-specific futures and “IOU” tokens that depend on the ETHW fork that will actually take place next month.

Binance, the world’s largest cryptocurrency exchange by volume, didn’t jump to list such a financial product, but also did not rule out the possibility to possibly list ETHW, stating that it would consider supporting all forked Ethereum assets on a case-by-case basis based on the “same strict listing review process” used for other coins.

Thursday’s revised announcement from Coinbase is consistent with such an approach; both companies seem to be waiting to see if an ETHW fork actually happens and how its affiliate token performs in a post-merger environment.

ETHW’s “IOU” releases, meanwhile, have fallen since receiving an initial round of speculative buzz. In the weeks following the token’s debut on Poloniex on August 8, ETHW fell around 62%at $52.59.

At the time of writing, ETHW plunged a further 13%, to $45.68, according to data from CoinMarketCap.

Additionally, the 24-hour trading volume for the token all but crashed, down 93% from a high of $13.8 million shortly after ETHW’s debut, to $957,589 on the 25th. august.

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