CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

Digital exchange ByBit to support post-Merge ETH POW tokens

By Aaron Woolner

04:29, 26 August 2022

ByBit gets behind POW ETH alternatives
ByBit gets behind POW ETH alternatives - Photo: Shutterstock

Ethereum’s upcoming hard fork, known as The Merge, is meeting resistance from miners set to lose valuable gas fees from the switch to a proof of work system  (POW) but exchanges are looking to support alternatives that emerge.

BitMEX announced recently it was preparing to support post-Merge tokens that rely on the energy intensive proof of work (ETHPoW). 

The latest exchange to do so is ByBit which told Capital.com that it was important to support the industry by ensuring a successful post Merge ETH POS chain.

ETH to US dollar

“ByBit’s USDC-settled ETH options will follow our standard settlement and delivery procedure and will be based on the dollar value of the PoS token; this will cover options listed before and after The Merge, said Charmyn Ho, head of crypto insights at Bybit. 

Ho, however, went onto to say that the digital asset exchange was deploying its experts to determine the viability of post-Merge ETH tokens which differ from the main chain. 

What is your sentiment on LINK/USD?

18.91459
Bullish
or
Bearish
Vote to see Traders sentiment!

ByBit to examine post Merge ETH tokens

“In a situation where there are forked tokens, our risk management and security teams have a set of criteria in place to determine the viability of listing these tokens on our platform. Should such tokens meet these requirements, we will support their airdrop, deposit, and withdrawal,” said Ho. 

The likelihood that such chains will succeed is high given the continued presence of ethereum classic (ETC) and bitcoin cash (BCH), both of which are the products of hard forks. 

ETC to US dollar

Despite the willingness of exchanges such as ByBit and BitMEX to support POW ETH tokens, not all parts of the cryptocurrency market are in agreement.

XRP/USD

0.53 Price
-0.550% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

BTC/USD

67,611.25 Price
-0.960% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

ETH/USD

3,769.53 Price
-1.540% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

DOGE/USD

0.16 Price
-0.370% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

Chainlink won’t support POS 

Chainlink (LINK) recently announced that it would only support a POS based ETH going forward, saying in a recent blog post that it wanted to respect the wishes of the broader ethereum community. 

“Users should be aware that forked versions of the Ethereum blockchain, including PoW forks, will not be supported by the Chainlink protocol. 

This is aligned with both the Ethereum Foundation and broader Ethereum community’s decision, achieved via social consensus, to upgrade the Ethereum blockchain to PoS consensus,” the Chainlink blog post said. 

(LINK) to USD 

Miners move behind POS 

At an individual level Ethereum miners may be complaining about the potential loss of gas fees but the sector’s biggest player is putting its considerable weight behind the POS switch. 

Ethermine, the world’s biggest Ethereum mining pool will not support a (PoW) token following the Merge, it said in a recent announcement.

Such a move will be welcomed by both environmentalists and legislators, groups which have been vocal over the energy intensive nature of POW mining. 

Markets in this article

ETH/USD
Ethereum / USD
3769.53 USD
-58.84 -1.540%
BCH/USD
Bitcoin Cash / USD
468.50 USD
-0.9 -0.190%
ETC/USD
ETC/USD
30.950 USD
-1.146 -3.630%
LINK/USD
ChainLink / USD
18.91459 USD
0.13281 +0.720%

Rate this article

Related reading

Capital Com is an execution-only service provider. The material provided in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents and has not been prepared in accordance with the legal requirements designed to promote investment research independence. While the information in this communication, or on which this communication is based, has been obtained from sources that Capital.com believes to be reliable and accurate, it has not undergone independent verification. No representation or warranty, whether expressed or implied, is made as to the accuracy or completeness of any information obtained from third parties. If you rely on the information on this page, then you do so entirely at your own risk.

Still looking for a broker you can trust?

Join the 610,000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading