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The naming of crypto projects is always a matter which causes project runners grief. The name a cryptocurrency carries affects how the crypto community perceives it, and how they engage with the particular project on the markets.
Steve Lohja, a technology coordinator at Ethereum Classic Labs, said that if the project removed the word Ethereum from its name, a number of top cryptocurrency projects would be destroyed.
Lohja expressed his sentiments through a tweet in which he said the removal of the tag would affect the market cap of many digital assets which relate to the Ethereum tag.
Opinion: Many #cryptocurrency in the top market cap would be absolutely #Rekt by #EthereumClassic if we removed #Ethereum from the brand. I know we are original Ethereum project, but maybe this can be water cooler chatter at summit eh? 🇨🇦
— Stevan Lohja (@stevanlohja) August 11, 2019
Significance of Ethereum Classic
Although Ethereum Classic may not be the most popular Ethereum project, the crypto company runs on the original Ethereum blockchain. It is, in fact, the Ethereum prototype and it was left behind after a hard fork was implemented in 2016 in response to a scandal involving DAO.
The project added the word Classic to its name after this hard fork in order to differentiate itself from Ether (ETH), its successor.
Possible effects of a name change
If Ethereum Classic opts to change its name and put some distance between itself and its successor, it could have some significant impact in the crypto world. The project itself could experience growth by crawling out of Ether’s shadow.
As is right now, when people are buying cryptocurrencies on the internet, Ether is the only Ethereum project which draws their attention. Any other project which shares the same tag is operating at a disadvantage because Ether already has a massive market cap and is rated as the number 2 cryptocurrency on the markets. Despite being the original project, Ethereum Classic looks like a copycat.
A number of crypto projects have added popular tags to their names in an attempt to lure investors to their coins. There a number of tokens which have made use of the words Blockchain and Bitcoin in their names because these words are the first that come to many people’s minds when you speak about cryptocurrency.
How a cryptocurrency’s symbol appears on crypto exchanges has also been noted as a factor which affects how investors engage with the particular digital asset. Cryptos with readable symbols are more likely to attract investors while those with ambiguous symbols create confusion and doubt in investors’ minds.
Industry experts claim that if Bitcoin’s smallest unit, the Satoshi, had a formal symbol, the cryptocurrency would perform even better than it currently does on the markets and it would be easier to make use of the digital asset for daily financial transactions.
The Bottom Line
Lohja might be on to something with regards to the potential benefits of Ethereum Classic changing its name. The project would be able to differentiate themselves from Ether and this could provide the boost they need to go up the cryptocurrency rankings.
By maintaining the Ethereum tag, the project appears to be trying to ride on Ether’s success despite it being the original Ethereum project. If the project wants to increase its market cap, a name change may be a good point to start.