Ethereum Classic 51% attack special.

by Osiris Team


Posted on Jan. 8, 2019, noon
Analytics Research
Time to read: 2 min
ETC

Osiris Finance has always been more than a cryptocurrency trading platform. We are a community of enthusiasts standing at the frontier of contemporary blockchain, machine learning and finance issues. That is why we are dedicating significant amount of time to formal research on the topics that are relevant to our investments. In November 2018, the Osiris Team has authored an article “Cryptocurrency Value and 51% Attacks: Evidence from Event Studies”, where we were the first in the field to suggest a framework of measuring fundamental risk exposures of proof-of-work cryptocurrencies to majority attacks. The manuscript is currently under review in one of the finance journals, and the preprint is available free of charge at SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3290016. We believe it is crucial to inform cryptocurrency investors and the blockchain community in particular of material risk associated with the asset class. Back in November, we envisioned that due to a number of reasons (to name a few, rentable hash power and the emergence of a wide variety of small PoW coins with low hash rate), frequent 51% attacks is “the new reality”, and investors might suffer double-digit losses on positions in coins undergoing or suspected to be undergoing an attack. Since November, two 51% attacks has already been recorded, affecting Vertcoin in December (Source: https://www.ccn.com/vertcoin-hit-by-51-attack-allegedly-lost-100000-in-double-spending/) and, just a couple of days ago, Ethereum Classic (Source: https://news.sky.com/story/ethereum-classic-hackers-hijack-blockchain-in-rare-51-attack-11601786). The pattern we revealed and documented in the article is being preserved here, providing us with a natural out of sample tests for our findings. Vertcoin and Ethereum Classic plunged in value 16.89% and 10.55%, respectively, on the day the attack has become public knowledge. You can consult the extensive sample of 51% attacks on proof-of-work blockchains in the table, tracing the phenomenon as early back as 2013 (Source: https://www.osirisfinance.com/digests-and-forecasts/ethereum-classic-51-attack-special) or in the preprint of the article (link above).

As for the predictions on future price movements for ETC, our research generalised from 14 attacks on 13 cryptocurrencies suggests that the price hardly recovers to pre-attack levels in the short to medium term, so there is probably no scope of realising significant gains by purchasing the coin now.

Overall, we are glad to announce our assertions regarding the 51% attacks for the blockchain community were correct, and we will be producing more cutting-edge research on cryptocurrency investment in 2019 so you could trade safely and well-informed. Stay tuned and good luck in your today’s trades!

All the best,
The Osiris Team.

Ethereum Classic 51% attack special. by Osiris_Finance on TradingView.com


Like and comment it on:

More cryptocurrency news

Latest news

Bitwise Bitcoin ETF Verdict Delayed By The SEC… Again

According to a breaking report from CoinDesk, the verdict on the Bitcoin (BTC) exchange-traded fund (ETF) application from California-based crypto upstart Bitwise Asset Management has been delayed once again.


Regulatory
BTC

May 15, 2019, 1:47 p.m.

Brave browser gaining impressive traction on Android, on par with Chrome

Brave is third, narrowly behind Google Chrome by Play Store rankings. Through a combination of innovative features including a native cryptocurrency, built-in privacy, and a streamlined experience, the app has been able to make headway in a well-entrenched industry.


Development
General

May 7, 2019, 5:52 p.m.

Bloomberg Report: Fidelity Will Start Institutional Bitcoin Trading Within Weeks

United States $7 trillion investment firm Fidelity will reportedly roll out bitcoin (BTC) trading for institutional clients in the coming weeks, Bloomberg reported on May 6.


Development
BTC

May 6, 2019, 3:07 p.m.

Kraken Just Now Disabled Bitcoin SV Trading, Price Continues To Decline

The Kraken exchange has followed several other exchanges in the decision to delist Bitcoin Cash SV (BSV), a move that has accelerated since Craig White’s decision to send legal notices to Twitter users and the likes of Vitalik Buterin and Peter McCormack.


Development
BCHSV

April 30, 2019, 5:31 p.m.

IOTA Inks Game-Changing Crypto-Powered Deal with Jaguar Land Rover

The UK-based company is teaming up with the IOTA Foundation for an initiative that will catapult cryptocurrencies into the limelight.


Adoption
MIOTA

April 29, 2019, 8:20 a.m.

Follow us