The upcoming Ethereum fork has sparked widespread speculation about potential profit opportunities—especially around proof-of-work (PoW) Ethereum and the fate of stablecoins like USDC on the new chain. However, Robert Leshner, founder of the decentralized lending protocol Compound, is urging caution. In a clear message to both newcomers and experienced participants in the crypto space, he warns: do not sell your supposedly "worthless" USDC on the PoW chain for a small amount of PoW ETH.
His advice comes as Ethereum transitions toward its long-anticipated merge to proof-of-stake (PoS), a shift expected to significantly alter the ecosystem’s structure and value distribution.
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Key Pre-Merge Considerations
As the merge approaches, uncertainty can create fertile ground for mistakes—and malicious actors. Leshner emphasizes several critical points for users navigating this period:
- Avoid scams at all costs. During times of network transition, phishing attempts, fake wallets, and fraudulent airdrop schemes increase. Always verify URLs, double-check smart contract addresses, and never sign unsigned transactions.
- Limit leverage and excessive risk-taking. Now is not the time to overextend your portfolio based on speculative fork outcomes. Market volatility is expected to spike in both directions—up and down.
- Secure your assets properly. Whether you choose a reputable exchange or a self-custodied hardware wallet, ensure your private keys are protected and that you maintain full control over your funds.
These principles apply regardless of whether you plan to engage with the PoW fork. The foundation of safe participation is security, awareness, and disciplined decision-making.
Risks of Engaging With the PoW Fork Chain
One of the most misunderstood aspects of blockchain forking is the continuity—or lack thereof—of digital assets across chains. Leshner clarifies a crucial misconception: a hard fork does not double your wealth.
When Ethereum splits into two chains—one continuing as proof-of-stake (PoS) Ethereum and the other as a proof-of-work (PoW) alternative—the state of the network does not automatically carry over in a functional way. This means:
- Stablecoins like USDC on the PoW chain may become unsupported by their issuers.
- DeFi protocols relying on oracles and centralized components may fail to operate correctly.
- Liquidity could dry up rapidly, making it difficult to trade or withdraw assets.
In short, holding tokens on the PoW chain doesn’t guarantee their value or usability.
“Be extremely careful about signing transactions on a fork chain; you have one private key that works on both chains, and a miner could potentially replay a transaction on Ethereum.”
— Robert Leshner
This leads directly to one of the most dangerous technical risks: replay attacks.
Understanding Replay Attacks in Blockchain Forks
A replay attack occurs when a transaction valid on one blockchain is maliciously or fraudulently repeated on another chain derived from the same history—such as during a hard fork.
Because your private key remains valid on both the original (PoS) Ethereum chain and the new PoW fork, any transaction you sign on one chain could theoretically be copied and rebroadcast on the other. Without proper replay protection mechanisms in place, this could result in unintended spending of funds on both chains simultaneously.
For example:
- You send 1 ETH to an address on the PoW chain.
- An attacker captures that transaction data.
- They re-broadcast it on the main Ethereum (PoS) chain.
- Now you’ve unknowingly sent 1 ETH there too.
While many official forks implement replay protection through transaction tagging or network upgrades, user-side vigilance remains essential. Always use wallets that support replay protection features and avoid interacting with unverified dApps on the forked chain.
👉 Learn how to protect your crypto from replay attacks during network forks.
Why Selling “Worthless” USDC Is Still Risky
Robert Leshner specifically cautions against the temptation to “sell all my worthless (POW) USDC for a little bit of (POW) Ether.” On the surface, this might seem like a rational move—if USDC loses its peg or backing on the PoW chain, why not swap it for something that might retain value?
But there are several hidden dangers:
- Illiquid markets: Exchanges listing PoW ETH and PoW USDC may have low volume and wide spreads, leading to poor execution prices.
- Unregulated environments: Many platforms supporting the fork operate without oversight, increasing counterparty risk.
- Smart contract vulnerabilities: New or hastily deployed DeFi protocols on the PoW chain may contain bugs or backdoors.
- No issuer support: If Circle (the issuer of USDC) explicitly disowns the PoW version, redemption rights vanish.
Essentially, trading "useless" stablecoins for speculative tokens amplifies risk without guaranteeing reward.
Frequently Asked Questions (FAQ)
Q: Will I get free money from the Ethereum PoW fork?
A: No. While you may technically hold balances on both chains after a fork, assets on the PoW chain—especially stablecoins—may not retain value or functionality.
Q: Can I lose money by doing nothing?
A: Generally, no. If you don’t interact with the PoW chain or sign any transactions, your funds on the main Ethereum network remain safe.
Q: Is PoW ETH valuable after the merge?
A: Its value depends on miner support, exchange listings, and community adoption. However, it lacks backing from core Ethereum developers and key ecosystem players.
Q: How can I protect myself from replay attacks?
A: Use wallets with built-in replay protection, avoid signing transactions on the forked chain unless necessary, and consider moving funds only after network stabilization.
Q: Should I use decentralized exchanges on the PoW chain?
A: Only if you fully understand the risks. Many dApps may not function as intended due to broken oracle feeds or unsupported token contracts.
Q: What happens to my DeFi positions after the fork?
A: Positions on the main Ethereum (PoS) chain will continue normally. Those interacting with PoW-chain versions of protocols may face impermanent loss or total fund loss.
Final Thoughts: Prioritize Security Over Speculation
While blockchain forks often generate excitement—and sometimes profit opportunities—they also introduce complex technical and financial risks. As Robert Leshner reminds us, your private key controls assets on both chains, which means every action you take must be intentional and informed.
Rather than rushing to extract marginal gains from unstable forks, focus on securing your existing portfolio, staying updated with official announcements, and avoiding emotionally driven decisions.
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The true long-term value in crypto lies not in chasing every speculative event, but in building resilience, knowledge, and sound judgment across market cycles.
Core Keywords: Ethereum fork, PoW ETH, USDC, replay attack, blockchain security, Compound founder, Ethereum merge