Cryptocurrency skyrockets 1,500%, but has an “expiration date,” warns Ethereum developer

Cryptocurrency skyrockets 1,500%, but has an “expiration date,” warns Ethereum developer

A cryptocurrency called Goerli ETH (GETH) appreciated more than 1,500% between Friday (24) and Saturday (25), but there’s a big problem: it has an “expiry date”. While the date isn’t written anywhere, GETH will be abandoned at some point. After all, it runs on an Ethereum testnet.

In other words, while the mainnet is built to work forever, testnets are usually abandoned after a certain period of time, erasing all previously made registrations.

That is, all cryptocurrencies on test networks are simply wiped. Partly because of this, it is common for such cryptocurrencies to be donated (for free) to those who need them to perform tests.

Ethereum Developer Issues Warning to GETH Investors

Ethereum developer Tim Beiko seemed stunned to have broached the subject and issued an important warning to investors interested in this bogus opportunity.

According to Beiko, there are three groups interested in the digital asset: client developers, application developers, and miners/stakers/node operators, each with different reasons to have some test coins.

Although these cryptocurrencies are distributed for free, the developer points out that there is a major supply/demand problem in the market.

“Over the years, the use of testnets by application developers has grown exponentially”, He wrote Tim Beiko on Twitter. “Distribution methods for GoETH (informal allocations + easy-to-win taps) have become increasingly unreliable, leading to the current issues surrounding GoETH acquisition.”

In other words, a developer intends to test their smart contract, but ultimately cannot find test coins, which, like in “real” Ethereum, serve to pay transaction fees.

That supply and demand would not be a problem. The point is that these cryptocurrencies will not only have no demand in the future, but will also be completely erased, as Tim Beiko himself points out.

“A good time to retweet this: Goerli will eventually shut down, future testnets including Sepolia may yield more ETH, and hopefully others will include more addresses in the genesis files after that.”

Finally, it is worth noting that all other cryptocurrencies also have their test networks, including Bitcoin, of course with their own worthless test cryptocurrencies, unlike this bizarre case.

What are the solutions?

Since such coins have no value, many end up leaving them in their wallets instead of “putting them back” in a faucet, for example, so that they can be collected by other people.

That is why Tim Beiko noted that it is difficult to solve this problem on a testnet that is already running, as in the case of Goerli. However, it proposed solutions for future testnets.

One would be the distribution of these cryptocurrencies to developers who have previously used other Ethereum networks, both test and main. Another would be coordination with the main developers to avoid any supply issues.

“If there are 10,000 developers on the ETH testnet, it is much easier for a new developer to find one than it is to reach one of the 10 whales on the existing testnets”Beiko wrote.

Finally, while Goerli has a major problem with the distribution and delivery of his test coins, the fact that these can simply be removed at any time shows that GETH is not a good investment.

Furthermore, despite rising 1,500% between Friday and Saturday, GETH already lost 85% of its value on Sunday, as shown in the chart below, and is expected to continue its decline.

GETH/ETH chart
Despite being expected to be worth nothing, Goerli ETH (GETH) is up 1,500% in recent days, worrying veterans.

Source: Live Coins