This month sees the ‘Merge’, the much anticipated merger between Ethereum’s (ETH) main chain and the test blockchain for developers. According to some, this is such an important moment that it will be one of the best entry points for Ethereum ever, and therefore almost without risk. But some analysts disagree.
Ethereum merge becomes sell-the-news
Brian Kelly of BKCM stated on CNBC that this important event could well be a ‘sell-the-news’ case. BKCM is a crypto hedge fund and appears to stand for Brian Kelly Capital Management. He thinks everyone has been buying ether coins for the past few years because the merge was coming:
In crypto you actually want to [door] buy the news and not sell, but everyone bought ether because the merge gives you a return [zult ontvangen]. But it’s not actually a yield. You just get inflation in the [cryptovaluta] back, it’s not really a yield. There is probably a greater potential for a sell-the-news case towards the Merge. There may also be a technical error, and it is not clear what the apps [op de blockchain] going to do if Ethereum splits again. Now [zullen er] are not one or two but three different Ethereums.
Ntoo hard fork?
By the latter, he presumably refers to “Ethereum 2.0” that will soon be released, Ethereum Classic and the token that may arise as a protest action at the merge. Not everyone is happy with the event. Some ETH miners are working on a hard fork to recreate a copy of the current version of Ethereum. But Ethereum founder Vitalik Buterin is very skeptical about this, as the community is very positive about the move.
The Merge is expected to take place on September 15. After this, the blockchain should be based on Proof-of-Stake instead of Proof-of-Work. Kelly is not alone in having a negative price outlook for Ethereum. Recently, a trader has doubled his portfolio by ironically doing the exact opposite of what CNBC host Jim Cramer says. Presumably you will soon read in the Ethereum news whether Brian Kelly is right.