Ethereum Plunges After SEC Chair Says ‘The Merge’ Could Make Crypto a Security
Ethereum, the second largest cryptocurrency in the world, continued to plunge in price over the weekend following the network’s highly publicized technical change known as ‘the Merge’ last Thursday as well as comments from the head of the Securities and Exchange Commission that ether might need to be a treated as a security. Ethereum is currently trading at roughly $1,290, down over 11% from 24 hours ago, while bitcoin, the most popular crypto in the world, is also down 8% to just $18,420. Ethereum completed a network upgrade known as ‘the Merge’ last Thursday, moving the cryptocurrency from a proof-of-work system to a proof-of-stake system. Proof-of-work was incredibly energy intensive, requiring so-called “miners” to have their computers play a guessing game to verify transactions. Proof-of-stake allows people who already hold ether to “stake” their cryptocurrency to verify transactions in exchange for longer term interest that’s earned similar to how a savings account might acquire interest.