Justin Sun’s Poloniex will Support Potential Ethereum Fork Tokens

The exchange will list their trading pairs ETHS/ETH and ETHW/ETH for trading in future.
Justin Sun’s Poloniex will Support Potential Ethereum Fork Tokens

Crypto exchange Poloniex announced the support for two potential forked tokens after Ethereum Merge, ETHW and ETHS as well as their listing on the platform.

According to the blog post, Ethereum Merge could create two parallel blockchains due to a hard fork and so two different ETH-based forked tokens will be there. Poloniex will list these two tokens to mitigate the risk “from market volatility during the hard fork” as well as secure users’ assets.

Poloniex will enable ETH swap for forked tokens after the success of Ethereum Merge.

The blog stated that ETH holders can swap their tokens with two potential forked tokens, ETHS [IOU] and ETHW [IOU] on Poloniex before Ethereum 2.0 upgrade at a 1:1 ratio or vice versa. It also disclosed that trading pairs of these tokens such as ETHS/ETH and ETHW/ETH might be added soon to its platform.

However, Poloniex will keep the deposit and withdrawal of ETHS and ETHW tokens off.

Among these tokens, ETHS represents proof-of-stake-based tokens, while ETHW stands for proof-of-work-based tokens.

Also Read: Ethereum Network Experiences Tenth ‘Shadow Fork’

The swap will commence on August 8 at 4:00 (UTC) and will be activated till Ethereum 2.0 upgrade.

Poloniex mentioned that if ETH 2.0 upgrade comes up with more than one chain, then all ETHS will automatically be converted into “upgraded” ETH tokens with a 1:1 ratio. Also, the exchange will recognize the PoW chain as the main chain for ETHW tokens.

In another scenario, if ETH 2.0 upgrade ends without a fork, then the ETH symbol will be as it is. Also, Poloniex will cancel the listing of ETHS and ETHW tokens as well as suspend their associated markets.

Furthermore, Poloniex has warned about the high risks involved in the investment of “forked tokens” as there is uncertainty over the hard fork during Ethereum 2.0.

Related Posts
Total
9
Share