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The new update allows customers to cash out more than one million “Ether” coins in the first week, with a value exceeding two billion dollars.
A new update to the Ethereum blockchain goes live tomorrow and is expected to allow customers to cash out 1 million Ether within the first week of the update, worth more than $2 billion.
Cryptocurrency investors, especially Ether, are eagerly awaiting Shabella’s update tomorrow, but what is this update and why is it important?
Shapella is an improvement on the Ethereum blockchain that allows users to withdraw deposits of Ether held on the network for 3 years using the Shanghai Token.
About 15% of the total “Ether” coins, worth $34 billion, have been deposited and placed on the blockchain since the beginning of 2020 within a project called “The Merge”.
For every 32 coins held indefinitely, a person receives one Ether and is responsible for storing data, processing transactions, and adding new blocks to the blockchain.
The system is an alternative to the previous mining process based on the principle of working in exchange for cryptocurrencies, with more mining operations, the chances of earning cryptocurrencies increase, which was previously criticized for consuming a large amount of energy.
With the new system adopted by “Ethereum” based on the principle of receiving cryptocurrency in exchange for holding your coins, for example, two-thirds of the energy required in the traditional mining process used by Bitcoin is used.
This new update will go live tomorrow and will allow customers to cash out 1.1 million Ether based on the latest Ether price of $1,922 in the first week of the update, which is more than $2 billion.
Notably, the “Ether” coin is up around 4% since the start of the week, but despite these gains, traders are confused as to how this update will affect the currency as these sudden gains can affect the price.
But according to cryptocurrency investment firm Fineqia International, only 29% of total Ether is currently being acquired, meaning it is being bought at prices below the current coin price, preventing most investors from deciding to sell or liquidate.
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