Somebody Stole $50 Million Worth of Ethereum, the Bitcoin Clone
It ain't easy out there for digital currencies.
The digital currency Ethereum is as unstable and unpredictable as its Bitcoin predecessor, reportedly seeing its first major rise in price ($21+) on Monday, and a hack that is said to have led to a dramatic price-decrease ($13.40) on Friday.
The value of digital currency Ethereum tanked Friday after hackers stole the equivalent of more than $50 million from an organization that controls large amounts of the cryptocurrency.
Attackers exploited a security weakness to steal more than 3.5 million ether tokens from an organization called the D.A.O., [Decentralized Autonomous Organization] which presently holds 9.2 million tokens, according to its website, worth about $150 million at the current price.
Aside from having a really shitty week, Ethereum could easily be the title for a project that Entourage's Vinny Chase would have strong-armed Ari into getting him the lead for, but ultimately ends up tanking, and teaching Vinny something about his crew in the process.
And what is a D.A.O.?
The New York Times reports, "The D.A.O. was supposed to act like a sort of venture capital fund, investing in projects that were voted upon by people who contributed money." The fund was funded entirely by Ether.
But what does this $50 million breach mean for the digital currency?
"The Ethereum development community has proposed a solution that could invalidate the transactions," Ethereum's said-to-be creator, told Marketwatch.
In that case, the Ethereum-hiccup may yet present itself as an opportunity to show democratic digital currency in its most malleable form: We made this money with our computers; someone tried to take it; so we will make it worth nothing.
Bitcoin, in other news, saw a historic 21 percent rise in value this week, reaching $770 at its peak and leveling out not far below that mark at time of posting.