Leading crypto project Ethereum Classic has released an article criticizing the recent move by Ethereum of splitting ETH into ETH 2.0 and ETH 1.x tokens. It stated that it is not only financially illogical but also an additional asset in an oversaturated market.
Splitting Ethereum into ETH 2.0 and ETH 1.x tokens, to keep an additional base layer, not only doesn't make sense financially, but creates an additional asset in an already oversaturated market.
— Ethereum Classic (@eth_classic) February 8, 2020
In its critical tweet, the company shared an article written by Donald McIntyre, Business Developer, and Ethereum Classic collaborator. The article analyses the move by Ethereum to split ETH and presents a constructively critical viewpoint. McIntyre wrote,
I personally think it’s good that ETH 2.0, ETC and ETH 1.x potential outcomes are being debated as I think the market, especially developers, consumers, enterprise, and government, need the smart contracts industry to settle on a few winning systems to be able to start investing serious money and building viable products on these highly valuable blockchain technologies.
Ever since Ethereum announced the migration to Ethereum 2.0, polarising views have continued to surface around the move, and therefore, McIntyre’s criticism doesn’t come as a surprise. However, what’s surprising is the fact that Ethereum Classic, a project forked out of Ethereum itself, openly criticizing the move, and calling it something which doesn’t makes financial sense.
Coming back to the article, it argues that ETH 2.0 will face fierce competition from the likes of EOS, ADA, Tezos, Libra, Polkadot, Dfinity, and other similar projects. However, it has a slight advantage in terms of security, which will definitely play an important role in the development of the project. McIntyre also added that ETH 1.x will be nothing more than low quality and low-value residue of ETH, which is not at all an encouraging opinion for the users. Giving multiple reasons for his claim, he included that 100% accounts, balances, and dApps from the older token will be duplicated on the ETH 2.0, and the modern version will have higher performance capacity and scalability than ETH 1.x, as the latter has no clear monetary policy.
You can read the entire article here.