In terms of popularity and market value, there is no doubt that eth coin is the second largest cryptocurrency. However, due to technical and operational deficiencies that raise serious concerns about its long-term prospects, it remains controversial. 

Before investing in cryptocurrencies, the following are some of the factors that potential investors should pay close attention to.

Initial coin issuance risk

Like other cryptocurrencies, ethereum has risen because it can promote the value of the original coin product. The ico market has expanded to over $3 billion and has strengthened the ethereum price in the process.

There is no doubt that ethereum is the number one platform of ico, which makes it in an unstable position. For projects using the ico platform, digital currency prices may be hit because ico decides to liquidate the above Ether and transfer it to the market.

In the field of cryptocurrency, people are increasingly skeptical that most icos are downright scams. As regulators begin to crack down on ico, ethereum may be hit hard.

Invariant constraint

A key selling point for most cryptocurrencies is always their ability to create undisputed event records that cannot be changed in any way. This is not the case with ether. The introduction of a hard fork after DAO was hacked eliminated the invariance of the blockchain.

This means that any transaction record made on the blockchain can be deleted on another hack. On the other hand, the ethereum Classic formed by the hard fork is highly variable.

Network congestion

Network congestion has become a big problem for ethereum. The number of IOSs executed on the ethereum blockchain network significantly affects the number of other transactions processed by the cryptocurrency, which made the ethereum market unstable.

The fast transaction speed of transactions has become a key selling point for other cryptocurrencies, which are slowly generating strong demand at the expense of ethereum.

Vulnerabilities and weaknesses

If history is traceable, then ethereum is not immune to attacks that could lead to the loss of people's funds. The cryptocurrency has suffered two major damages, one of which led to the split of the original cryptocurrency.

The second vulnerability is the most important because it shows the lack of a multi-signature solution that is synonymous with immature technology.

Inflation problem

Currently, there is no upper limit to the amount of ethereum that can be circulated at any given time. Unlike bitcoin coin, which sets a cap of 21 million coins, the value of the ethereum coin will continue to depreciate as more coins enter the market.