Why isn't Ethereum Classic worth $0? Macro investor asks after 51% attacks

Published on by Cryptoslate | Published on

Ethereum Classic, the fork or version of the Ethereum protocol that didn't freeze the funds of the infamous DAO hack, has been under the spotlight over the past week.

51% attacks can enable "Double-spending," when cryptocurrency can effectively be used twice to trick service providers or users.

A second attack took place on Aug. 5, as first reported by mining pool Ethermine and Binance.

According to the companies, approximately 800,000 ETC was double-spent, while the attack cost an estimated $204,000 worth of Bitcoin for the attack.

Etereum Classic should be worth $0, argue analysts after 51% attacks.

"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. Digital currency is supposed to be secure. What am I missing here?".

"How does ETC even hold any value?" Greenspan asked in response to the news of the attack.

Although ETC may be in a bad place after these attacks, with the introduction of the "Phoenix" upgrade in June, that means that Ethereum Classic has reached protocol parity with Ethereum.

"This upgrade demonstrates the robust development underway on Ethereum Classic, as it is the third hard fork in the last year; and reflects the strong community consensus among ETC stakeholders. The upgrade also marks an important turning point for Ethereum Classic, where now the community is in a position to drive more innovation, to collaborate, and to make fresh technical contributions to the ETC and ETH communities."

How Ethereum Classic proponents and developers attract Ethereum applications, assets, developers, and most importantly, users is not yet clear.