It has been an uneventful start to the week for crypto. Most cryptos have started the day lower. Bitcoin is down by about 3%, while most altcoins are down by about 4 to 8%. However, in this period, Ethereum Classic (ETC) has been doing well. At the time of writing, Ethereum Classic (ETC) was up by 4% and has been going up by over 72 hours now. So what could be the possible driver to this sustained momentum in a weak market?
Well, one of the factors that could be behind this is, is the news of an attempted takeover of the ETCDEV. It is interesting that Ethereum Classic (ETC) gained momentum after Igor Artomonov penned an article on medium touching on the attempted takeover of ETCDEV. In a part of his write-up, he stated that there was an attempt by DFG and ETC Labs to over ETCDEV. Here is part of what he wrote.
“It seems that they agreed that Darcy would bring ETCDEV under ETC Labs. He had all our short and long-term plans, all contacts, and ETC Labs would get much more control over the protocol with him.
Without my knowledge, all the ETCDEV engineers received a call and an offer from ETC Labs with much better terms for what is supposed to be the same job.”
He concluded his paper by stating that,
“We are experiencing a social attack on ETC itself right now. Unfortunately, this attack is being perpetrated by internal members of the community, such as ETC Labs/DFG. ETC is a valuable asset and currently a public blockchain without a single owner. That makes it a perfect target for a takeover, even at the cost of destroying the main development group of the network.”
So why would this cause Ethereum Classic (ETC) to spike? Wouldn’t this be moving the project more towards a centralized path, which is contrary to its core ideals? Well, this may be true, but crypto is at a point where most investors are feeling desperate. That’s after a bear market that has dragged altcoin prices down by over 90%.
This is especially hurting for truly decentralized projects like Ethereum Classic (ETC) that don’t have any central entities pumping them through aggressive marketing. Under such condition, the market may move positively in response to a move towards centralization, just to help shill the price through coordinated marketing. This is a probable reason why Ethereum Classic (ETC) is holding up strong, relative to the rest of the market.
Whatever is the reason for Ethereum Classic (ETC)’s recent price rise, there is no doubt that it is very close to the bottom. After dropping from a high of $47 to a low of $4, Ethereum Classic (ETC) seems to have plateaued. This is an indicator that it is at the bottom or very close to the bottom. As such, at this point, it is either likely to start ranging or start gaining on any positive news that comes to the market. It’s the same scenario for other altcoins, given that most of them are at their lowest points in the year.