Blockchain Investor Analysis

Ethereum Classic

ETC
Current Price $6.92 (+1.58%)
Ethereum Classic is a blockchain network that forked off the Ethereum blockchain in 2016 after the infamous DAO hack because a section of the Ethereum community at the time wanted to keep the original blockchain as it was. Today, Ethereum Classic is an established standalone blockchain projects.

Our Rating:

Market

Problem that it solves

Ethereum Classic is a decentralized blockchain solution that enables developers to build decentralized applications using smart contracts.

Customers

Individuals and businesses looking to deploy decentralized applications and smart contracts.

Value creation

Anyone looking to build decentralized applications or use smart contracts on the Ethereum Classic blockchain benefits from holding the ETC token.

Market structure

The market for decentralized applications and smart contracts is growing but remains very concentrated for the Ethereum Classic blockchain.

Market size

The smart contract market size is growing and potentially limitless.

Regulatory risks

The regulatory risks are fairly low due to Ethereum Classic's decentralized infrastructure. However, the possibility always exists that regulations against digital coins could be passed by one or several governments without much warning.

Average Market Score

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Competitive Advantage

Technology/blockchain platform

Ethereum Classic touts itself as the 'original Ethereum blockchain,' and uses much of the same technology as its 'older brother.'

Lead time advantage

Since Ethereum Classic is a fork of Ethereum but with much less adoption, the project does not have much lead time advantage despite being active since 2016.

Contacts and networks

The Ethereum Classic project no longer supports a formal leadership hierarchy. However, some of its early leadership allows ETC access to areas other coins may not have.

Average Competitive Advantage Score

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Management Team

Entrepreneurial Team

The ETC Core team has been part the industry since 2016 and has managed to build and maintain a successful blockchain network.

Industry/technical experience

The project has been around since 2016, so it's safe to say that Ethereum Classic Core developers have plenty of industry experience.

Integrity

With no official leadership team in place, Ethereum Classic aims to be as transparent as possible.

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Token Mechanics

Token required

Ethereum Classic tokens are required by developers building DApps and deploying smart contracts on the network.

Value added

As a fork of Ethereum, which has effectively the same features but is a much more successful project by almost every metric, the ETC token falls under the 'another one of those' category.

Decentralized

Ethereum Classic is doing everything in its power to make itself more decentralized. This is manifested in the removal of a leadership hierarchy. However, the recent 51% attack shows that its blockchain is not as decentralized and secure as it should be.

Token supply

There is a known quantity of 210 million ETC tokens.

Public exchange

ETC is available on many popular exchanges.

MVP

The Ethereum Classic blockchain has been active since 2016.

Average Token Mechanics Score

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User Adoption

Technical difficulty

As a smart contract platform, Ethereum Classic is not as easy to understand as a standard digital currency network, such as Bitcoin or Litecoin.

Halo Effect

Ethereum Classic hasn't often been associated with high-profile brands. However, it is listed on popular exchanges such as Coinbase and there is an ETC Investment Trust.

Buzz

Ethereum Classic has very little buzz on social media compared to its 'older brother' and other similar projects.

Average User Adoption Score

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Overall Score

Weighted Average of the five section scores above

Blockchain Investor Analysis

Ethereum Classic is often referred to as Ethereum little brother and rightfully so. The Ethereum Classic network has effectively the same functionalities as Ethereum but with a much smaller community. As a result, Ethereum Classic faces an uphill battle against other smart contract platforms.

Additionally, Ethereum Classic suffered from a 51% attack, which suggests that the network is not as secure as it needs to be to grow into a serious contender in the smart contract platform market. Having said that, ETC continues to rank among the largest digital assets by market capitalization, so the market believes that it could.

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