Ethereum’s Price Falls 10% Following a $30 Million Theft – Trustnodes

Ethereum’s Price Falls 10% Following a $30 Million Theft

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Just as ethereum’s price was seemingly recovering, an exploit of a critical vulnerability in the Parity wallet sent it down crashing yesterday, to then somewhat recover today, currently trading at around $220.

Ethereum’s roller-coaster.

The bug has now been fixed, but not before $32 million was stolen from ICOs that used Parity’s multi-sig feature, which had the critical vulnerability.

The news sent ethereum’s price down to $190 from a recent brief high of $260, but the vulnerability might be limited as it appears only the multi-sig feature of Parity’s wallet was affected.

As such, price seemingly recovered, but whether that’s just an expected bounce after a quick fall or more of a continuation of the recent rise from $130 remains to be seen.

That rise was caused by some very big names, such as MasterCard and Cisco, joining the Enterprise Ethereum Alliance which seemingly turned sentiment, but its not clear what effect yesterday’s news may have on the price direction.

There are arguments for both bulls and bears. On the bear side, the exploit may show ethereum is still immature and needs some more years of hardening through testing and, yes, through “bounties” of sorts for clever hackers.

The event also reminds everyone just how careful one has to be as ethereum is a bearer asset. Once it moves, it’s gone. That makes it somewhat risky and probably untouchable as far as your grandmother is concerned.

On the bull side, the quick response and the saving of some $160 million worth of eth by developers may show some competence with the protocol so gradually improving and therefore increasing in utility.

Moreover, this may show why private blockchains should be built on ethereum as the Enterprise Ethereum Alliance just received a free bug report paid by a “bounty” from ICOs.

Bulls, therefore, may want to price in the chances of the protocol so maturing to the point where your grandma can use it and, presumably, they want to get in before ethereum develops into its ultimate form with sharding and all the rest.

But they both might be ignoring bitcoin. Events seem to be moving fairly fast there. With just ten days to go now, they all seem to be preparing for what might be quite an historic day as some big blockers seem to be gearing for a chain-split to Bitcoin Cash.

Their troubles should benefit eth as bitcoin benefited from ethereum’s troubles last year, starting its bull run from around $300 to a high of $3,000.

But bears may argue as a better known brand bitcoin’s problems may reverberate to ethereum. So we’ll just have to wait and see how bulls and bears fight it all out.

 

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