Counterparty Eats Ethereum’s Lunch – XCP Moons, ETH Goes Bearish

Earlier today, NewsBTC.com published an article 1 announcing Counterparty’s intention to bring Ethereum smart contracts to Bitcoin by leveraging the Ethereum Virtual Machine. Counterparty noted that it spent the past year polishing this software on a test network, but that they are now ready to go live with Ethereum-style smart contract support on the main Bitcoin network.

The news immediately caused a sharp spike in the price of XCP, the token used within Counterparty’s system, seeing it rally more than 370% at its peak of 0.0095 BTC per token.

This news comes at a bad time for Ethereum and the ETH market value. The ETH bubble seems to have finally popped, forming a “diamond top” pattern, and this news of Counterparty eating Ethereum’s lunch could bring further capitulation.

However, the following tweet caused some to doubt as to whether the Counterparty announcement was genuine:

The screenshot 2 within the tweet shows a chat conversation with Robby Dermody, Co-Founder of Counterparty, denying the information in the article. The article has since been removed from NewsBTC.com, but you can view a cached version here, and a screenshot here.

In another twist, my own source, Chris DeRose, also of Counterparty, indicated that the news is, in fact, true.

Quote from Chris DeRose, used with permission.

While we don’t know exactly when these new Counterparty features will drop onto the main Bitcoin network, it sounds like the bulk of the work is done, and Bitcoin smart contracts are ready for production.

This development in the blockchain ecosystem brings an important reminder to light:

You can try to privatize your projects, centralize parts and develop toward your own agenda, but once you meet the responsibility of having your code open-sourced and subject to the approval and scrutiny of the public, you also present your code to be re-purposed for Bitcoin. That’s why I love the altcoin ecosystem & the “blockchain” movement! The industry is trying as hard as it can to find the edges of this new paradigm, all at the expense of centralized interests.

UPDATE: The freelance writer involved with the premature news release provided the following clarification:

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  1. The article has since been removed from NewsBTC.com, but you can view a cached version here, and a screenshot here.
  2. Archived here.

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