The Securities Law Implications of the DAO Hack and Proposed Ethereum Hard Fork
The top five blockchain crowdsales bore out of the Bitcoin 2.0 movement have raised more than a quarter-of-a-billion dollars in “initial coin offerings,” “token sales” and the like. Participants contend the blockchain tokens are going “to the moon.” Others argue, since they’ve never been registered, they run afoul of securities law. The second largest....
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In the wake of the DAO hack, which had dire implications for the Ethereum blockchain, multiple exchanges acknowledged the existence of new alternative tokens, Ether Classic, based on the original Ethereum code. Exchanges accepted the new “ETC.” Ultimately, Coinbase worked towards the same. That decision turned out to be costly, as the exchange found itself in the middle of the war between Ethereum and its “Classic” rival. Coinbase Got Replayed. The company did suffer from a costly attack itself as fallout of the Ethereum attack. Coinbase CEO tweeted: The biggest news over the past two....
According to Roger Ver, the outcome of Ethereum’s hard fork was considered a good thing by the market. The cryptocurrency investor noted that, since the #2 cryptocurrency split into Ethereum and Ethereum Classic following the theft resulting from the hack of the DAO, the combined value of both forks is now equal to greater than the original total value of a unified Ethereum: Ethereum fork meant to isolate stolen funds. Following a hack of the DAO involving the theft of millions of Ether, the Ethereum community decided a hard fork was in the best interests of the cryptocurrency. The....
A lot of people are expressing their concern over the Ethereum fork idea. Decision-making of such proportions should be left to the community, rather than a handful of developers. The Ethereum ecosystem is still in a state of flux after the attacks against The DAO. It has become apparent the goal is to execute either a soft or hard fork to resolve this situation. But Peter Todd argues that forking is not the right way to solve this situation. A lot of people still seem to confuse The DAO with Ethereum and vice versa. The DAO is a project on top of the Ethereum platform, and Ether is the....
Ethereum Classic is all set to get a hard fork of its own soon to counter the sustained DOS attack. Ethereum Classic is on its way to get a hard fork in the next two days. Ethereum recently split into two blockchains following a hard fork introduced by the Ethereum development team a few months ago. The hard fork resulted in two versions — Ethereum (ETH) and Ethereum Classic (ETC). While Ethereum continued to operate on the new fork, a portion of the cryptocurrency community decided to continue with the original Ethereum blockchain, calling it Ethereum Classic. Ethereum recently came under....
The Ethereum Merge may constitute a taxable event if it results in a chain-splitting hard fork, tax experts warn. Ethereum (ETH) hodlers that don’t play their cards right following the Ethereum Merge may be in for a hefty bill come tax time, according to tax experts. Around Sept.15, the Ethereum blockchain is set to transition from its current proof-of-work (PoW) consensus mechanism to proof-of-stake (PoS), aimed at improving the network’s impact on the environment. There is a chance that The Merge will result in a contentious hard fork, which will cause ETH holders to receive duplicate....