The last month has seen a spate of high profile forks, as zclassic (ZCL), eth classic, and litecoin have all split to create new coins. Each of these has a shared history with its parent chain. In the run-up to the fork, many investors bought in hoping to claim their free dividend, or simply to chase the pump expected to push prices higher. They’ve since discovered that there’s no such thing as a sure thing in crypto, with all three coins dumping ahead of the fork, leaving investors nursing heavy bags.
Free Coins – But at What Price?
Forks and airdrops are a prevailing trend that has been ramping up ever since bitcoin cash emerged last August. It wasn’t the first coin to have forked, but it proved to be the most successful by some distance. Ever since, developers have been eager to fork existing blockchains for a variety of reasons. Litecoin classic removes LTC’s mining algorithm in favor of a DAG; callisto aims to deliver smart contracts that are more secure than ethereum classic; and zclassic underwent a hybrid fork with bitcoin to create bitcoin private.
In addition to these forks, NEO recently issued an airdrop of ONT, a new token, to all NEO holders. Next week, monero will fork into monerov (XMV). It’s too early to assess the success of these new arrivals, especially in current market conditions. For what it’s worth, bitcoin private is trading around $65, with more exchanges still to come, and litecoin classic is around $2.20, down from a peak of $5. Time will judge the merits of these coins, but the past will assess the wisdom of having bought into the coins these offerings forked from ahead of their snapshot…