- Bitcoin veteran Dan Tapiero in a tweet questioned why the Ethereum Classic is not worth zero yet.
- It has a massive market capital of $883.42 million despite the consecutive 51% network attacks that took place in the last few days.
Bitcoin veteran Dan Tapiero in a tweet questioned why the Ethereum Classic is not worth zero yet? It has a massive market capital of $883.42 million despite the consecutive 51% network attacks that took place in the last few days. He further said that why should people own any digital asset which is not safe, can be easily attacked and stolen given that there are so many alternatives in the crypto space. According to him, digital currency is always supposed to be secure.
Why isn't #ethereumclassic worth zero? It has a $800mm mkt cap.
Why own something that can be easily attacked and stolen when there are so many alternatives (even within alts space).
Digital currency is supposed to be secure.
What am I missing here?https://t.co/k78W8m6kL0
— Dan Tapiero (@DTAPCAP) August 6, 2020
Tapiero is a renowned American Bitcoin advocate and also a mainstream investor. He founded a global macro fund, DTAP Capital, in 2004, co-founded a private U.S. farmland REIT, AGCOA, in 2007, GBI in 2008, and US Farm Trust in 2013. His tweet was in response to the two consecutive 51% attacks that took place on 31st July and 5th August respectively on the Ethereum Classic network. A similar thought was reflected in Mati Greenspan’s tweet.
— Mati Greenspan (Tweets are not trading advice) (@MatiGreenspan) August 6, 2020
The Recent 51% Attack Resulted In Double Spending Of 800000 ETC
On August 1st, Bitfly tweeted that the Ethereum Classic network saw a chain reorganization of approximately 3693 blocks at a block height of 10904146 which stopped the syncing of all the state pruned nodes. This was the first 51% attack. And on August 5 as well, cryptocurrency exchange, Binance, and Ethermine reported another 51% attack on the ETC network. It has been estimated that in the most recent attack 800,000 ETC amounting up to $5.6 million have been double spent and the attack alone cost Bitcoin worth $204000.
Despite all this ETC continues to be the 28th largest cryptocurrency platform based on market capital. In addition ETC’s price has remained stable and in fact, it has been up by 2% in the last 24 hours and is currently trading at $7.25. This comes as a surprise because considering the fragility and security of the platform the price should depreciate.
Ethereum Classic’s Blockchain Architecture Seems Fragile
In a recent analytical report on this 5th August attack by Bitquery has revealed that the hacker had intimate knowledge about Ethereum Classic’s blockchain design. In his quest to exploit funds the attacker only spent $20000 dollars. The security team was not alerted immediately and it took the ETC team days to recover from the attack. This reflects that ETC’s Blockchain architecture is extremely vulnerable and is unsafe, a reason why Tapiero considers investing in altcoins other than ETC.