BitcoinNews

Upcoming Forks Are Likely to Generate Interest in Cryptocurrencies

Forks for significant or popular coins are hard to resist for holders and crypto enthusiasts. For one because their prices go up shortly after the fork riding on original coin popularity. Secondly, holders of original coin get free baby coins after a fork

Five forks that coming in the next 90 days will generate more interest in the five cryptocurrencies as more anticipate airdrops. This is according to Fundstrat’s Thomas Lee.

The five forks include Bitcoin Private fork expected on February 28; MoneroV, and a Monero fork scheduled on March 14. Callisto, a fork of Ethereum Classic will come on March 5, Ontology, a fork of NEO on March 1; and the last is Everipedia IQ, an upcoming fork of EOS.

These tokens outperformed Bitcoin by 4.8% since the peak of altcoins according to Lee.

Interest in the coins is because holders of original currencies get “airdrops,” which are free coins of the forked currency. Additionally, the price of the original coin goes typically up just before the fork as more people usually buy anticipating free coins. The forks also carry on some publicity of the original currency and are not so badly off in pricing.

Bitcoin attracted very many forks last year. One of those forks is Bitcoin Cash. After launch, Bitcoin Cash traded at $200 each, which means it was new free profit for the then Bitcoin holders.

Fundstrat says that Bitcoin forks in August and October added 15 percent to its value. Additionally, Litecoin got about a third of its return after Feb 18 split.

Thomas Lee, Fundstrat’s head of research, said in the report,

“This could be a function of the ‘network effect’ spreading to related protocols — or it could be simply a function of buyer ‘greed”.

With the next NEO fork, each NEO holder will get 0.2 ONT for each NEO held. 50 percent will be available for trading. Holders will be able to trade the other half after the MainNet launch.

Moreover, it will be hard for people to resist the upcoming forks given their current popularity.

Buying with anticipation is also a considerable bet

However, buying with an expectation of fork profits is also a huge bet. For instance, not all exchanges support the new currency. In fact, getting a fork to list in as many exchanges as possible is one of the challenges after launching a fork. It may take some time to trade the coin.

Another challenge is software changes or updates that follow the forks. For instance, activation of SegWit means that some coins sent coins may permanently disappear. Also, the price may fall sharply a few weeks following the fork.

Lee said the current cryptocurrency sell-off might end in late March.

“The alt-coin selloff is more than halfway done and is shaping up for a strong rally in late summer 2018,” Lee wrote.

Find us on Twitter and Telegram for more information on Crypto Forks.

Was this post helpful?
Let us know if you liked the post. That’s the only way we can improve.
Tags
Show More

David

David Kariuki is a journalist who has a wide range of experience reporting about modern technology solutions including cryptocurrencies. A graduate of Kenya's Moi University, he also writes for Hypergrid Business, Cryptomorrow, and Cleanleap, and has previously worked for Resources Quarterly and Construction Review magazines.

Related Articles

Close