Distributing new coins for holders of a certain digital asset is all the rage. Now, Ethereum Classic (ETC) will have its turn, with the promised Callisto project airdrop for those who hold Ethereum Classic coins. The airdrop is scheduled for March 5.
In the past weeks, a new trend of linking a new digital asset to an old one has served as a boost to the market, affecting coins in very different ways. In the case of Ethereum Classic, it is surprising that the asset has held a rather subdued price. ETC prices even slid slightly, to $32.44, and continue to unwind against Bitcoin. Even with a boost from USDT and Korean Won trading, ETC is still far from the bullish price predictions that see the asset going to $100.
And since the expectations of the Callisto airdrop have been around for days, it is possible that the news was already discounted, and that the price of ETC may drop even further on selling. While crypto users sometimes hold the asset to receive the new coin, at other times traders merely use the hype to sell at a profit, not caring for the airdrop or hard fork.
Similar scenarios led to a spike and crash in assets like NXT and Ardor (ARDR) ahead of the IGNIS airdrop. The more recent and very dramatic example saw ZClassic (ZCL) spike to above $180 on the promise of the Bitcoin Private airdrop, but then wipe out most of the gains within hours, to slide to $14 and keep crashing.
It is possible that ETC is also overlooked and underpriced, but in the past months, the coin has seen dramatic, short term fluctuations, while remaining in an overall depressed position.
Some believe the latest hype may be actively harmful, and ETC is set for a tough weekend.
Others believe Ethereum Classic would prove to be immune to the hype that caused the dramatic spike and crash of ZClassic. Ethereum Classic is a project with a long-term outlook, and may gain significance as Ethereum moves to a proof-of-stake network later this year, while ETC remains a coin attractive to miners.
The Callisto protocol is a separate system for on-chain governance. The CLO token will be a separate proof-of-stake asset, while the main network remains secured by mining. Claiming CLO tokens would give voting rights in the decision making process.