Ethereum Classic (ETC), a cryptocurrency that has been hit with a 51% attack at the start of this year and has seen hackers double spending tokens, outperformed Ethereum (ETH), a cryptocurrency that she left, after success.
At the beginning of this month, Ethereum Classic underwent a reorganization of the block when someone managed to get 51% of the husthrate on its network. At the time, ETC's development team declared that no attack was taking place, but soon recognized what happened.
Although the reports differ, it is estimated that around $ 460,000 ETC tokens have been spent twice on cryptocurrency exchanges, including YoBit and Gate.io, which have covered losses of nearly $ 200,000 for its users.
According to CryptoCompare data, Ethereum Classic, after the attack, outperformed Ethereum. On 5 January ETC was trading at $ 5.25, while ETH was at $ 155, and now they are at $ 4.4 and $ 121.9 respectively. While both fell, the fall of Ethereum was more significant.
Various factors may have helped ETC to outperform its older brother. For one, the attackers behind the 51% attack apparently returned the ETC token that was taken from the exchanges.
While Gate.io initially revealed that it had recovered $ 100,000 of ETC, the blockchain security firm SlowMist claimed that its system found that the attacker returned all the stolen funds.
According to the SlowMist BTI System, it was found that all ETCs that 51% of hackers took from exchanges returned them at 11:00 on 10 January 2019. Included @YobitExchange122735 ETC e @gate_io$ 100,000 applies ETC. @ClassicIsComing @eth_classic pic.twitter.com/0gvxUwokKJ
– SlowMist (@SlowMist_Team) January 16, 2019
Nevertheless, a private mining pool has accumulated hashpower after the attack, suggesting that it could come more in the future. On the other hand, as expected, Ethereum's Constantinople hard fork has recently been delayed due to the discovery of critical vulnerability.
This saw a decline in the price of ETH above 7% in a short space of time. Speaking with CryptoGlobe Mati Greenspan, senior market analyst at eToro, he revealed that ETC passed the ETH after having suffered a 51% "logic rally" attack.
This, he added, as the value of cryptocurrency is related to its immutability. He has declared:
The value of a cryptocurrency is related to its immutability. If a crypto is vulnerable to a 51% attack, it is difficult to see how it maintains its value.
When asked if he believes the market is currently irrational and can correct it in the future, he has consented and said that a correction is likely. However, Greenspan noted that "we can never know for sure, nor can we say how long it could take."
As expected, Ethereum was also not the most powerful decentralized platform for applications, as TRON outperformed over the last six months compared to the launch of the BitTorrent BTT token on the Binance Launchpad.
To update: Responding to a request for commentary Alex Krüger, economist and trader who often shares technical and fundamental analysis on social media, said:
Outperformance makes sense. Failed upgrade of Constantinople speaks badly of ETH. Moreover, even if ETC looks almost like a failed currency (it does), once Ethereum passes to the POS [Proof-of-Stake] ETH miners will try to get away (by creating a third Ethereum coin) or move to ETC, strengthening the network.