• Latest
Grayscale Assures Investors: Ethereum Classic Trust Funds Not at ‘Direct Risk’

Grayscale Assures Investors: Ethereum Classic Trust Funds Not at ‘Direct Risk’

January 11, 2019
ygg sea surpasses 10,000 scholarships in just six months of launch

YGG SEA Surpasses 10,000 Scholarships in Just Six Months of Launch

May 6, 2022
mintable launches industry changing gas free minting service on ethereum

Mintable Launches Industry Changing Gas Free Minting Service on Ethereum

May 1, 2022
5 projects enabling smart contract development on bitcoin

5 Projects Enabling Smart Contract Development on Bitcoin

April 29, 2022
bitcoin atm installed in mexico's senate building

Bitcoin ATM installed in Mexico’s Senate Building

April 27, 2022
cross chain services play a crucial role in facilitating continued adoption of defi applications

Cross-Chain Services Play a Crucial Role in Facilitating Continued Adoption of DeFi Applications

April 26, 2022
justin sun launches usdd, integrating the blockchain world and the real world with the decentralized stablecoin

Justin Sun Launches USDD, Integrating the Blockchain World and the Real World with the Decentralized Stablecoin

April 25, 2022
nfts: the next musical revolution

NFTs: The Next Musical Revolution

April 24, 2022
things you should know before investing in nfts

Things You Should Know Before Investing in NFTs

April 24, 2022
what are wrapped tokens?

What Are Wrapped Tokens?

April 23, 2022
what is the future of ethereum (eth)?

What is the future of Ethereum (ETH)?

April 22, 2022
green gaming

Everything You Need to Know About Play-to-Earn on Algorand in 2022

April 21, 2022
$ape going bananas as rumors of upcoming land sale of bayc metaverse gather momentum

$APE Going Bananas As Rumors of Upcoming Land Sale of BAYC Metaverse Gather Momentum

April 21, 2022
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining
CoinNewsDaily
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining
No Result
View All Result
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining
No Result
View All Result
CoinNewsDaily
No Result
View All Result
Home Business

Grayscale Assures Investors: Ethereum Classic Trust Funds Not at ‘Direct Risk’

coinnewsdaily by coinnewsdaily
January 11, 2019
in Business
0
Grayscale Assures Investors: Ethereum Classic Trust Funds Not at ‘Direct Risk’
190
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter

Related articles

ygg sea surpasses 10,000 scholarships in just six months of launch

YGG SEA Surpasses 10,000 Scholarships in Just Six Months of Launch

May 6, 2022
5 projects enabling smart contract development on bitcoin

5 Projects Enabling Smart Contract Development on Bitcoin

April 29, 2022

In the wake of a 51 percent attack on ethereum classic (ETC), the manager of an investment vehicle that holds the cryptocurrency has been fielding inquiries from investors looking to understand if the underlying assets in the fund are safe, CoinDesk has learned.

On Monday, the day after the reorganization of transactions on the ethereum classic blockchain came to light, Grayscale Investments, the creator of the Ethereum Classic Investment Trust (ETCG), says it sent emails in response to “a few” clients asking for clarity on what the attack meant. A copy of an email response to such an inquiry was obtained by CoinDesk.

Grayscale said it had not sent a notification to all investors in the fund.

While mostly providing a general explanation of how such attacks work, Matt Beck, a product development and research associate at Grayscale, wrote in the email:

“The greatest risk this poses is to the integrity of the Ethereum Classic Network, as people may be less inclined to accept ETC given the increased double-spend risk. However, the coins within the ETC Trust are not at direct risk of theft or double-spending.”

In explaining why, Beck cited a quote in Breakermag last year from a developer of another cryptocurrency project, Vertcoin, which suffered a similar attack.

“Double spending can only be done by the original sender of the coins — so an attacker can only double spend his own coins, not someone else’s,” the Vertcoin developer, Gert-Jaap Glasbergen, said in the article. “So, the main risk of 51 percent attacks and blockchain reorgs is with people [who] accept the blockchain’s asset; and mostly when they do so in large amounts in exchange for virtual goods or services that are non-reversible.”

Beck also referenced a CoinDesk column by Michael J. Casey about the Vertcoin incident, which noted that 51 percent attacks are a risk faced by most proof-of-work blockchains and that some are more vulnerable than others depending on the amount of hashing power that secures the network.

Michael Sonnenshein, managing director of Grayscale, told CoinDesk through a spokesman:

“As often occurs following developments in the digital asset ecosystem, Grayscale received inquiries from a few investors about the recent 51 percent attack on the ETC network. We provided investors who contacted us with publicly-available information explaining how these attacks occur. These types of network attacks and their implications are also described in the disclosure documents we provide all investors.”

As of Dec. 31, the trust had $24.9 million of assets under management. Like CoinDesk, Grayscale is owned by Digital Currency Group (DCG).

‘Hands off’

Stepping back, it’s important to note that despite the severity of the 51 percent attack – one exchange lost $200,000 as a result – ethereum classic’s price has held fairly steady, at least by crypto’s volatile standards.

According to CoinMarketCap, it dropped from $5.49 on Sunday, shortly before the reorg became public knowledge, to a 7-day low of $4.28 on Thursday, a 21 percent decline. On Friday afternoon it was back up to $4.54.

The value of shares in ETCG has tracked the currency’s decline over this period, falling from $9 at midday Monday to $6.78 Thursday before rebounding to $7.30 Friday afternoon.

That relative market calm may help explain why Grayscale sent its explainer only to the few investors who asked rather than a doing broader shareholder communication.

The trust was launched in 2017 as a private placement. As such, only accredited investors can buy shares directly from Grayscale, and they must hold them for at least a year before redeeming. In that sense, they are locked in for a time. Since May of last year, ETCG shares have been available for purchase or sale on OTCQX, an over-the-counter (OTC) market.

Grayscale appears to have stayed out of the developer community’s discussions of the attack. Yaz Khoury of the Ethereum Classic Cooperative, which supports the development of the protocol, said that although Grayscale provides a fair amount of funding to his organization through the trust, “other than provide financial help and advice to the Cooperative, they’re very hands-off in how we manage to help the ETC community and ecosystem.”

Similarly, developer Cody Burns said of Grayscale: “They tend not to meddle in projects development. They are focused on finance.”

Christine Kim contributed reporting.

Michael Sonnenshein at Consensus: Invest 2018 image via CoinDesk archives. 



Credit: Source link

Tags: BusinessCryptoCrypto Business
Share76Tweet48
Previous Post

Institutional Investors Interest in Crypto

Next Post

Web 3.0’s Crypto Winter Mission: Keep Our Heads Above the Hype

coinnewsdaily

coinnewsdaily

CoinNewsDaily.com is an online Crypto Coin News Website that aims to provide latest trendy news from market and around the world.

Related Posts

ygg sea surpasses 10,000 scholarships in just six months of launch
Alt Coin

YGG SEA Surpasses 10,000 Scholarships in Just Six Months of Launch

May 6, 2022
5 projects enabling smart contract development on bitcoin
Alt Coin

5 Projects Enabling Smart Contract Development on Bitcoin

April 29, 2022
cross chain services play a crucial role in facilitating continued adoption of defi applications
Alt Coin

Cross-Chain Services Play a Crucial Role in Facilitating Continued Adoption of DeFi Applications

April 26, 2022
justin sun launches usdd, integrating the blockchain world and the real world with the decentralized stablecoin
Alt Coin

Justin Sun Launches USDD, Integrating the Blockchain World and the Real World with the Decentralized Stablecoin

April 25, 2022
what are wrapped tokens?
Bitcoin

What Are Wrapped Tokens?

April 23, 2022
what is the future of ethereum (eth)?
Alt Coin

What is the future of Ethereum (ETH)?

April 22, 2022
Load More
Next Post
Web 3.0’s Crypto Winter Mission: Keep Our Heads Above the Hype

Web 3.0's Crypto Winter Mission: Keep Our Heads Above the Hype

Categories

  • Alt Coin
  • Bitcoin
  • Business
  • Ethereum
  • ICO
  • Litecoin
  • Mining
  • NFT
  • Ripple
  • Tech
  • Trading

What New here?

  • YGG SEA Surpasses 10,000 Scholarships in Just Six Months of Launch
  • Mintable Launches Industry Changing Gas Free Minting Service on Ethereum
  • 5 Projects Enabling Smart Contract Development on Bitcoin
  • About Us
  • Contact Us
  • Privacy & Policy

© 2018-2021 CoinNewsDaily.com by CoinNewsDaily Inc. Crafted with Love by iFtiDev

No Result
View All Result
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining

© 2018-2021 CoinNewsDaily.com by CoinNewsDaily Inc. Crafted with Love by iFtiDev

  • bitcoinBitcoin(BTC)$28,826.002.42%
  • ethereumEthereum(ETH)$1,825.440.60%
  • tetherTether(USDT)$1.01-0.06%
  • binancecoinBNB(BNB)$331.16-2.08%
  • rippleXRP(XRP)$0.4461263.71%
  • cardanoCardano(ADA)$0.3838389.52%
  • dogecoinDogecoin(DOGE)$0.0773654.01%
  • matic-networkPolygon(MATIC)$1.161.00%
  • solanaSolana(SOL)$23.070.33%
  • polkadotPolkadot(DOT)$6.402.00%
  • shiba-inuShiba Inu(SHIB)$0.0000111.90%
  • tronTRON(TRX)$0.0679831.43%
  • litecoinLitecoin(LTC)$82.170.14%
  • daiDai(DAI)$1.00-0.04%
  • chainlinkChainlink(LINK)$7.674.84%
  • cosmosCosmos Hub(ATOM)$12.01-0.18%
  • leo-tokenLEO Token(LEO)$3.38-3.08%
  • ethereum-classicEthereum Classic(ETC)$20.951.08%
  • moneroMonero(XMR)$154.12-1.37%
  • okbOKB(OKB)$45.09-1.55%
  • bitcoin-cashBitcoin Cash(BCH)$134.421.35%
  • stellarStellar(XLM)$0.0935151.55%
  • filecoinFilecoin(FIL)$5.94-0.46%
  • crypto-com-chainCronos(CRO)$0.0716250.36%
  • vechainVeChain(VET)$0.0237240.80%
  • algorandAlgorand(ALGO)$0.2301795.97%
  • internet-computerInternet Computer(ICP)$5.290.70%
  • eosEOS(EOS)$1.17-1.22%
  • aaveAave(AAVE)$79.491.33%
  • elrond-erd-2MultiversX(EGLD)$43.56-2.04%
  • tezosTezos(XTZ)$1.18-0.47%
  • theta-tokenTheta Network(THETA)$1.050.32%
  • havvenSynthetix Network(SNX)$2.85-2.37%
  • neoNEO(NEO)$12.24-2.11%
  • paxos-standardPax Dollar(USDP)$1.01-0.03%
  • bitcoin-cash-svBitcoin SV(BSV)$37.883.06%
  • pancakeswap-tokenPancakeSwap(CAKE)$3.84-0.61%
  • dashDash(DASH)$57.81-0.32%
  • huobi-tokenHuobi(HT)$3.99-2.27%
  • makerMaker(MKR)$687.200.11%
  • iotaIOTA(MIOTA)$0.2190210.73%
  • zilliqaZilliqa(ZIL)$0.0287271.04%
  • zcashZcash(ZEC)$36.362.02%
  • basic-attention-tokenBasic Attention(BAT)$0.2510091.18%
  • nemNEM(XEM)$0.0407982.78%
  • Elrond ERDElrond ERD(ERD)$0.0259290.00%
  • qtumQtum(QTUM)$3.22-0.47%
  • kusamaKusama(KSM)$34.62-1.17%
  • compound-governance-tokenCompound(COMP)$45.511.15%
  • bitcoin-goldBitcoin Gold(BTG)$17.052.22%
  • yearn-financeyearn.finance(YFI)$8,979.633.10%
  • ftx-tokenFTX(FTT)$1.89-21.50%
  • omisegoOMG Network(OMG)$1.81-4.76%
  • golemGolem(GLM)$0.2460860.27%
  • wavesWaves(WAVES)$2.28-0.27%
  • sushiSushi(SUSHI)$1.18-2.79%
  • ontologyOntology(ONT)$0.2347880.24%
  • digibyteDigiByte(DGB)$0.0099560.27%
  • umaUMA(UMA)$2.08-1.70%
  • ethlendAave [OLD](LEND)$0.53-3.08%
  • UniswapUniswap(UNI)$2.4438.80%