The Bitcoin Cash (BCH) ecosystem is promoting the launch of an Ethereum token for its community, which will have the opportunity to join the DeFi ecosystem. For the Bitcoin (BTC) community, this release could be another blow for investors.
Bitcoin Cash is an altcoin that emerged in 2017 when technical disagreements over BTC block sizes divided the community. Thus, BCH appeared as a fork, increasing the capacity of transaction blocks and justifying that this would be the true vision of the creator of Bitcoin, Satoshi Nakamoto.
However, this coin never managed to surpass the original BTC and take its place. Its network processes few transactions, even with much larger blocks, and has become stale 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 DeFi, powered by Ethereum networks, Binance Smart Chain, among others.
These so-called 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 having a good time after the bankruptcy of several projects and hacker attacks that breached these platforms.
Even so, the Bitcoin Cash community is launching an Ethereum token called VERSE that hopes to bring DeFi to the BCH network.
According to the lawyer in charge of the project, Joseph Collement (Bitcoin.com General Counsel), the Bitcoin Cash community’s Ethereum token could be better than Binance, FTX and Crypto.com projectsfor example.
“Given the current regulatory landscape, launching a utility token can be considered a daunting task. Over the past four years, we’ve 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 regulatory-compliant way. This is an exciting and promising new chapter for all users of the Bitcoin.com ecosystem.
The Bitcoin community believes the token is the final blow
For the Bitcoin (BTC) community, the launch of BCH in 2017 has always been treated as a serious issue, as it divided the community and sowed discord over the fundamentals of the biggest cryptocurrency, in an episode known as the name of “Block Wars”. .
Since then the bitcoin money is a project treated as a scam, having among its main promoters of “Bitcoin Jesus”, Roger Ver.
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 funds for an already bankrupt company. Criticism has even focused on BCH turning to Ethereum for the launch of its controversial Verse token.
“Roger Ver(e)’s new ICO for his Bitcoin(.)com platform is called ‘Verse’ – a final cash grab for a bankrupt company? It includes everything under the Bitcoin(.)com brand (app , news, services). And it’s not even a token on the BCH, but an ERC-20. Jesus…”
Roger Ver(e)’s new ICO for his Bitcoin(.)com platform is called “Verse” – a final cash grab for a struggling company?💸
It includes everything under the Bitcoin(.)com brand (app, news, services). And it’s not even a token on BCH, but an ERC-20.
— Ruben Somsen 🌌⛓️ (@SomsenRuben) July 31, 2022
The project seeks to raise funds from investors via ICO, stating that it will create a DEX exchange for the BCH ecosystem and a card for consumers to spend their coins.
Even so, the project was not well received by critics. Since December 2017, when BCH peaked at $12,480.00, Bitcoin Cash has fallen by 93%.