Crypto Trader Says Potential Ethereum Airdrop Makes Him ‘Incredibly Bullish’ on NFTs – Here’s Why
A closely followed cryptoanalyst says the potential for a new fork of Ethereum (ETH) makes him very bullish on the non-fungible token (NFT) sector.
The pseudonymous trader known as Kaleo says to his 530,000 followers that he has spotted Ethereum’s upcoming merger with the Beacon Chain, which already runs the proof-of-stake model.
While many are looking forward to Ethereum’s big update, some are critical of it, and discussions of a possible hard fork back to a proof-of-work (POW) chain mail merge have increased.
In such a situation, Kaleo says that since all non-fungible tokens on Ethereum will presumably also reside on the new chain, NFT holders could essentially double their collections.
“Hypothetical – let’s say there is a semi-viable ETH proof-of-work fork that emerges after the merge (for simplicity going forward, let’s call it pETH).
Any ETH NFTs you own pre-fork, you now own on both chains.
…There will definitely be a decent amount of volume for NFTs on the disguised chain if any DEX (decentralized exchange) supports pETH as the community begins to speculate on which will be the dominant chain.
Kaleo uses Bitcoin Cash’s (BCH) price action in 2017 when it was forked from Bitcoin (BTC) as an example. According to the cryptoanalyst, there was a momentary phase where BCH seemed to compete with BTC.
“Take BCH in 2017 as a case study.
After the fork, there was a decent amount of short hype where one BCH hit as high as almost 0.45 BTC.
Obviously we’ve seen extreme attrition since then, but that doesn’t change the potential behind the speculative nature of the first effort.”
Since a proof-of-work fork of Ethereum can be seen by some as the “original” (OG) version of the best smart contract platform, Kaleo speculates that some investors may place more value on NFTs on the fork.
“Speaking of the nature of NFTs, the OG status is a big draw for many collectors. Take [CryptoPunks] for example.
Who’s to say that if the POW chain develops its own viable ecosystem down the road, a narrative won’t develop for owning OG NFTs on the “OG chain.”
Because of this potential scenario, Kaleo says he is currently “incredibly bullish” on some of the top Ethereum-based NFT collections.
“To sum up, there is one key reason why I remain incredibly bullish on OG blue chip ETH NFTs heading into the merge and believe there will be an increase in the current NFT market volume spike as these narratives continue to develop themselves.”
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