The ecosystem BitcoinCash (BCH) is promoting the launch of an Ethereum token for its community, which will have the opportunity to join the DeFi ecosystem. For the community of Bitcoin (BTC), this launch could be another blow against investors. Bitcoin Cash is an altcoin that emerged in 2017 when technical disagreements over BTC block sizes divided the community. Thus, BCH emerged as a fork, increasing the capacity of the transaction blocks and justifying that this would be the true vision of the creator of Bitcoin, Satoshi Nakamoto. However, this coin never managed to overtake the original BTC and take its place. Its network processes few transactions, even with much larger blocks, and has become obsolete over time. But its creators may have a new strategy to try to find new users.
Bitcoin Cash community launches Ethereum token and tries to attract new users
One of the popular terms that has emerged in the cryptocurrency market in recent years is DeFipowered by networks ethereum, Binance SmartChain, among others. These supposedly decentralized solutions would be a new way of doing finance, with the potential to create banking institutions for cryptocurrencies and remunerate users. However, the sector is not going through a good time after the bankruptcy of several projects and hacker attacks that violated these platforms. Still, the Bitcoin Cash community is launching an Ethereum token called VERSE that it hopes will bring DeFi to the BCH network. According to the lawyer responsible for the project, Joseph Colement (General Counsel of Bitcoin.com), the Bitcoin Cash community’s Ethereum token could be better than Binance, FTX and Crypto.com projectsfor instance.
“Considering the current regulatory landscape, launching a utility token can be seen as a daunting task. For the last four years, we have looked at what other ecosystems have done with their own tokens (Crypto.com, Binance, FTX, etc.). We learned from their mistakes and developed $VERSE in a way that rewards users of the Bitcoin.com ecosystem in an innovative and compliant way. This is an exciting and promising new chapter for all users of the Bitcoin.com ecosystem.”
The Bitcoin community believes that the token is the final blow
For the community of Bitcoin (BTC), the launch of BCH in 2017 was always treated as a serious issue, as it divided the community and brought discord to the fundamentals of the largest cryptocurrency, in an episode that became known as “Block Wars”. Since then, Bitcoin Cash is a project treated as a scam, with Roger Ver among its main promoters. But for Bitcoin analyst Ruben Somsen, host of The Unhashed Podcast, the new ICO of Roger Ver and his Bitcoin Cash community could be a way to raise money for a company that is already bankrupt. The criticism even focused on citing that BCH is turning to Ethereum for the launch of its controversial Verse token.
“Roger Ver’s(e)’s new ICO for his Bitcoin(.)com platform is called “Verse”: a final cash grab for a failing business? Includes everything under the Bitcoin(.)com brand (app, news, services). And it’s not even a token on BCH, but an ERC-20. Jesus…”
Roger Ver’s(e) new ICO for his Bitcoin(.)com platform is called “Verse” – a final cash grab for a failing business?💸It includes everything under the Bitcoin(.)com brand (app, news, services). And it’s not even a token on BCH, but an ERC-20.Jesus…🤦♂️https://t.co/I4EFHanxFZ pic.twitter.com/nbcLK4MftX– Ruben Somsen 🌌⛓️ (@SomsenRuben) July 31, 2022
The project seeks to raise funds with investors through ICOs, claiming that it will create a DEX exchange for the BCH ecosystem and a card for consumers to spend their coins. Even so, the project has not been well received by critics. Since December 2017, when BCH reached its peak price of $12,480, Bitcoin Cash has plunged 93%.