BitMEX CEO Arthur Hayes: Ether Will 'Test' $200 When ICOs 'Return'

Omar Faridi
  • BitMEX CEO Arthur Hayes has predicted that ether (ETH) price will "rebound aggressively."
  • Hayes believes ether's price will recover once the initial coin offering (ICO) market comes back in the next 18 months.

Arthur Hayes, the co-founder and CEO of BitMEX, the world’s largest cryptocurrency derivatives trading platform, recently predicted that the price of Ethereum’s native token, ether (ETH), will “rebound aggressively.”

Hayes, who previously worked at Deutsche Bank and as head trader at Citi, told Cointelegraph Japan that the main use case for Ethereum is to use its blockchain network to launch initial coin offerings (ICOs). However, Hayes noted that the ICO market is “dead” right now and that it will likely return within “18 months.”

Hayes: Ether Could “Quickly Test” $200

Explaining how the price of ether could recover, the Wharton Business school graduate remarked:

The use case for Ether is primarily ICOs. That market is dead right now … Once there are new issues (ICOs), then ether will rebound aggressively. When the ICO market returns, ether will quickly test $200. The timing of the ICO rebirth is 12 to 18 months out.

As CryptoGlobe reported in mid-August, Hayes called ether a “shitcoin” as its price had mostly been pumped by speculative venture capitalists and ICO projects. At the time, ether’s price dropped below the $300 mark and Hayes said the companies and inexperienced investors that invested in the cryptocurrency and/or ERC-20 tokens would likely dump their holdings as they would not be able to stomach more losses.

Notably, the price of ETH has since dropped below $100 as Hayes predicted it would, but has now recovered and the token is trading at around $130.

Security Tokens & Stablecoins

In his recent interview, Hayes also predicted that stablecoins will be dominating the cryptoasset markets before the ICO market comes back (in the next 12-18 months). The BitMEX co-founder noted:

Security tokens and stablecoins will prove attractive sirens for investors in 2019. While their fundamental raison d'etre is flawed, investors in this time of pain will latch onto anything they believe will be their ticket to easy riches.

As covered by CryptoGlobe in November, Asher Tan, the founder of Australia-based crypto exchange, Coinjar, has predicted that stablecoins would be the “next big thing.” Tan, who launched Coinjar in 2013 along with computer scientist Ryan Zhou remarked:

The interesting thing right now, what's on everyone's lips … [are] stablecoins … It's a craze right now … It helps you transfer money around the crypto ecosystem at a stable rate. But there's a whole lot of applications or use-cases that could come out of it.

Tan also revealed there are now an increasing number of software engineers, economists, and traditional investors who have started to take more interest in stablecoins. Commenting on active involvement of a relatively large number of players in the development of USD-pegged coins, Tan noted "these are things that usually only a central bank would have thought about five years ago, and now you've got tech start-ups looking at economics, and how can you peg a currency to a token."

Major Ethereum Classic (ETC) Developer Updates Revealed for Q1 2019

Stevan Lohja, the Technology Coordinator at Ethereum Classic Labs, recently published an extensive blog post, which has revealed several important updates regarding the ongoing development of Ethereum Classic (ETC), a Turing Complete and proof-of-work (PoW) platform for developing decentralized applications (dApps).

ETC Labs Core was reportedly launched in January in order to extend “support and move the Ethereum Classic ecosystem forward,” Lohja wrote. He added that during the course of the “first few months” of ETC Labs Core’s establishment, the organization “reached important milestones with ETC-ETH compatibility, vital data analytic tooling, fundamental specifications to improve the DApp development environment, and significantly grew the team with prominent developers in the blockchain space.”

Ethereum Classic Developer Team Size Increases by 75%

Lohja, a former Technical Writer at ETCDEV, an organization which focused on developing Ethereum Classic that was forced to shut down recently due to lack of funding, noted in a Medium post published on April 23rd, 2019 that Ethereum Classic’s developer team size has increased by 75%.

As Lohja mentioned, the Ethereum Classic development team “began with Constantine Kryvomaz, Meowbits, Michael Collison, Mike Lubinets, Shane Jonas, Stevan Lohja, and Zachary Belford.” Recently, more developers have joined, “including Alan Li, Devon Wesley, Jake Lang, Talha Cross, Zac Mitton, and Zane Starr,” Lohja revealed.

During Q1 2019, the Ethereum Classic developer team has proposed the Ethereum Classic Improvement Proposal (ECIP)-1054 upgrade, which has been codenamed Atlantis. This update, Lohja noted, has received “tremendous support throughout the community.”

“ECIP-1054: Proposed Changes to Testnet and Mainnet Target Block Heights”

According to Lohja’s blog, the ECIP-1054 specification “contains proposed testnet and mainnet target block heights, but there needs to be more discussion with client developer groups at this time.” He added that “the motivation of the ECIP-1054 upgrade fork is to enable maximum ETC-ETH compatibility and performance improvements.”

As detailed by Lohja in his blog post, the following set of Ethereum Classic network upgrades are being worked on (or have been worked on) at present:

  • “ECIP-1054: Atlantis, EVM and Protocol Upgrades,”
  • ECIP-1053: Add OpenRPC Service Discovery to JSON-RPC Services,”
  • “Contributed to Kotti network, a public Ethereum Classic test network based on Proof of Authority,”
  • “Continued support and maintenance for Classic Geth and Multi-Geth clients.”

Staying Focused On Providing “High Quality Network-Driving Software”

Lohja further noted that the “Client team has remained focused on the task of providing high quality network-driving software,” in order to help developers create various decentralized applications (dApps).

During Q1 2019, the Ethereum Classic team addressed several issues, in addition to working on the updates mentioned, Lohja wrote. He added that in “early Q1, [the ETC team] had a double spend attack in the form of a 51% mining attack.” However, Lohja explained that the cryptocurrency platform’s team “responded with monitoring tools to help users of the network adjust number of confirmations accordingly.”

Technical Details: Optimizing The Ethereum Classic Network

To further ensure the security of the Ethereum Classic network, the team “completed an open source network supervisor to monitor network distribution in light of 51% attack” and it also “completed an ELK stack configuration for Geth clients,” Lojha noted.

As explained by Lohja:

In Q4 2018, we identified [that] there was a strong need for high-level software quality at the base layer for most application developers who engage with JSON-RPC. We examined solutions such as Open API and gRPC, but they were not a fitting solution. The idea of a tool to bring Ethereum Classic, as well as all other blockchains, up to speed with Open API and gRPC was started. So far, we have achieved a “no breaking change” of completeness in addition to releasing the spec with a number of complimenting tools.

In addition to working on these technical requirements, the Ethereum Classic developers focused on tasks related to the EVM/Compiler Team, Just-in-Time Compiler (JIT), LLVM EVM Backend, and they also ran into some “unexpected” issues. These details can be found in Lohja’s blog post.

The Ethereum Classic team also released the OpenRPC Specification 1x, and they contributed OpenRPC improvement proposals to Ethereum (ETH) and Bitcoin (BTC).