The long-awaited Ethereum merge is set to take off after the Goerli Testnet success in August. The practical merge, set to launch between Sept 10 to Sept 20, 2022, will see Ethereum transition from a Proof of Work (PoW) network to a full Proof of Stake (PoS).
While the merge is a necessity for the sake of environmentally-friendly transaction processes — also as a way to reduce the scalability trilemma faced by the leading DeFi network powering nearly half of all DeFi smart contracts — we must also anticipate certain discrepancies which will help us prepare ahead of time in worst-case scenarios.
The Ethereum foundation and development have assured the Ethereum community of a successful transition, according to a report by Decrypt.io, however, there are still some boxes left unchecked which has kept many enthusiasts in the dark about the launch.
We’ll see some possible iterations and speculations about the Ethereum merge. Meanwhile, we’ll also see some positives from the crypto market as Supontis Token, a DeFi newcomer sets to explode following potential IDO. Also, Hex Coin is set to follow a positive trend in the coming crypto summer.
The situation around the Ethereum Merge
A lot of speculation has risen ahead of the merge. Mainly the speculations have revolved around conspiracy theories about a possible centralization of the Ethereum network and the uncertainty of censoring validators on the network. Also, speculations include legal uncertainty surrounding the Ethereum network, high gas fees, price variations, and high-risk scams.
There isn’t much to be worried about because the transition is expected to take around 12 minutes or more if security situations arise. Also, a possible security glitch is not to be feared because 150 developers will be on the ground to tackle it.
In July 2022, Ethereum carried out its only second Ropsten Testing and finally, the Goerli testing [in August] confirmed a prospective success of a full merge. Ethereum will now merge its beacon chain with the mainnet.
Unlike, how it sounds, the merge will be a hard fork of the Ethereum mainnet to a complete PoS consensus network. This means that Ether (ETH) tokens will be a duplicate of the original tokens on the first mainnet. Another way to see this is the hard forking of the Ethereum Classic Token (ETC); a distinct but similar token was created afterwards.
The Ethereum hard fork will create whole different but similar ETH tokens, transferring the information on the old tokens to the new chain. There is also nothing to panic about as everyone gets their token with equivalent values. This could also disrupt every Ethereum-powered protocol and token.
What’s more, many crypto exchanges like Coinbase and Binance, have announced plans to halt Ethereum transactions during these periods to help combat potential problems which may arise during this period.
The Ethereum Merge: Likely expectations
The Ethereum merge has continued to drive high expectations and panic in the DeFi industry. Here are a few to be mindful of.
1/ Legal uncertainty
Ethereum has faced recent backlash from the crypto community after a perceived centralization of the network. While this situation is fully controlled by the Ethereum foundation, there have been demands to begin censoring big organizations that have high stakes in the ETH2.0 pool.
Recall that Ethereum needed the community to stake their resources to help improve the ETH2.0 network. Large stakers will be given validatory nodes and DAO governance rights. However, a report by Dune Analytics, showed that major centralized entities and institutions including Binance, Coinbase, Lido, and Kraken, among others held more than 60% of the network nodes.
The above report could lead to legal discrepancies in the future if perhaps, there happens to be a scenario similar to the Tornado Cash situation, where sanctions affected nearly all the addresses associated with the crypto mixing protocol.
Furthermore, there could be taxation on the new Ethereum system. That means, hodlers and traders of the Ethereum coin (ETH) should brace for potential taxes.
2/ High gas fees
Reports by many crypto journalists suggest that there could be high fees during this period. The reason is that the network will likely be slow and there could also be a chance of speculative or panic buying or selling for profits, which could congest Mempool.
High gas fees are usually visible when the Ethereum network is congested which is a likely situation during the merge. This could also cause transaction reversals and price variations and extreme volatility.
3/ Increased token burning
Ethereum will look to employ a full deflationary token model which includes regular token burning according to multiple reports. Although Ethereum has always been deflationary, however, not as it would be after the transition; there will be increased token burning.
4/ Risk of scams
A major report by Decrypt showed a possible scam pre-merge and post-merge periods. A typical case study is the “relay attack” which is similar to a phishing scam on the blockchain. The attackers will create duplicate and fake hashes and IDs in a bid to lure uninformed enthusiasts to send their old Ethereum tokens in fear of losing their assets to the hard fork.
Hex Coin (HEX) targets a new high point in Q4 2022
Hex Coin (HEX) has been on a downtrend since hitting an all-time high of nearly $0.5 in September last year. The reason is not far from the crypto winter and the much anticipated Pulsechain layer 2 network launch.
Hex Coin is set to take a new route following a crypto summer, which could set off after it addresses its pending scaling network launch, and concludes some partnerships.
Supontis Token presents a huge earning margin for early hodlers
Supontis Token is another positive to take out of 2022, especially after the long uncertain, and panic-ridden fiscal year. Supontis Token, a BNB Smart Chain token, is set to enter the crypto market with an explosion.
Investors looking to invest in promising blue-chip tokens starting at a very low rate can capitalize on Supontis’ presale to grow their portfolios in the long term. While you consider buying the Supontis Token, ensure you carry out due diligence yourself as this article seeks to introduce you to the Supontis ecosystem.
As said earlier, Supontis is currently running its presale where it dedicates more than 3 billion tokens from its total supply to the program.
There will be bonuses attached to the presale. For instance, you get an instant 25% bonus when you sign up and make your first purchase regardless of the minimum amount. Additionally, your bonuses could stack up to 300% the more you engage in the presale and also refer friends to the program.
How to buy Supontis Token
Buying Supontis Token is very easy:
- Visit the official website of the ecosystem: Supontis.com
- Head to the “Presale” button starkly displayed on the landing page of the website.
- Register by entering your basic information, the amount of token to buy, and the cryptocurrency you wish to purchase the token with.
- Next is to enter the presale and connect your wallet to receive tokens.
Final words
The Ethereum merge has been the biggest news of Q3 and Q4 2022. Investors believe they could still leverage Ethereum’s merge news to make more profits off the market. However, there are chances that this may not be a possibility. In that case, Supontis Token could provide the profitability investors need.
Simply visit the platform, sign up for presale, buy and hodl $PON tokens, and earn bonuses while you await the tokens’ public launch to earn more rewards through staking, DAO governance, and liquidity mining.
Learn more about Supontis Token:
- Presale: http://register.supontis.com/register
- Website: https://supontis.com/
- Telegram: https://t.me/SupontisTokenOfficial
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