Ethereum Classic (ETC) is the only top 20 cryptocurrency in green as the rest of the market bleeds red. The coin is up 1.85% against the US Dollar and 3.0% against Bitcoin (BTC). While this may appear to be nothing out of the ordinary, this is not the first time this has happened. The primary reason for this is that many investors see Ethereum Classic (ETC) as a safe bet in bad times. Most investors already believe that Ethereum Classic (ETC) is significantly undervalued.
Apart from that, Ethereum Classic (ETC) is considered to be a low risk asset in case something goes wrong. So, if the whole market crashes tomorrow or something extraordinary happens, Ethereum Classic (ETC) will not change much. This perception is based on the fact that Ethereum (ETH), which is a fork of Ethereum Classic (ETC), is currently 40 times the size of Ethereum Classic (ETC) and trading at a price of $597. Ethereum Classic (ETC) and Ethereum (ETH) were both priced at $2.25 in July 2016. However, Ethereum (ETH) received a big price boost and made incredible gains to reach an all time high of $1,377, whereas Ethereum Classic (ETC) only reached an all time high of $45.51 in January this year.
Most investors today are realizing how unjustified this market cap difference between Etheruem Classic (ETC) and Ethereum (ETH) is all things considered. Ethereum (ETH) is not technological superior to Ethereum Classic (ETC), if not inferior. Much of its valuation is based on ICO hype and speculation. It was the first platform to conduct such a massive number of ICOs. Ethereum Classic (ETC) lagged behind in this space because the team believed that enough measures are not in place yet to properly screen ICOs in order to protect against scams and frauds before an ICO is launched. Ethereum (ETH) did not bother with any screening or compliance and allowed many fraudulent ICOs to use its platform. It may have worked so far but now with the SEC beginning to be more concerned about ICO frauds, all of this could soon backfire and Ethereum (ETH) might find itself in hot water.
In a scenario like that, most developers and miners will have to turn to Etheruem Classic (ETC), hence driving its price up. Another attraction for Ethereum Classic (ETC) investors is the limited number of coins that will ever be in circulation as opposed to an unknown supply for Ethereum (ETH). One of the basic reasons why many investors turned their fiat currencies into cryptocurrencies was to protect against devaluation as central banks print more paper. If Ethereum (ETH) can do the same thing, as it did in the case of the notorious DAO bailout, this makes it no different than fiat money, which means people are more likely to opt for Ethereum Classic (ETC) or Bitcoin (BTC) over Ethereum (ETH). Being aware of these developments, most institutional investors are already investing in Ethereum Classic (ETC) for the long haul. Current price movements may demonstrate a lack of interest at the moment but a lot is happening on the outside. Ethereum Classic (ETC) aims to provide a fully compatible IOT (Internet of Things) platform by November 30, 2018 which has the potential to rank it above Ethereum (ETH) in the years to come.