After $156.0 million’s worth of Ethereum (ETH) tokens were “accidentally” frozen last week, developers and technologists are racing to find out what happened. Urgency is in the air. Though, oddly enough, investors seem unfazed by what happened…
How else do you explain that ETH rose 4.48% overnight? Or that the Ethereum to USD is still strong at around $318.58?
It’s not like ETH investors are particularly forgiving—they have dragged prices down to $250.00 for far less than a multi-million-dollar hack.
Ignorance is not the answer. The hack was banner headline Ethereum news on every crypto website, blog, forum, and social media outlet. It even made it to mainstream media publications like Forbes and Fortune.
So what gives? Why are investors shrugging their shoulders at a $156.0-million exploit?
Here are three possible reasons:
- The hack affected mostly small businesses, not individuals.
The hack occurred on a third-party service that runs atop the Ethereum blockchain. It is typically used by small businesses that want to launch a smart contract or an initial coin offering (ICO), which is why the average investor is not enraged at the moment.
- 60% of the lost funds belong to the company that screwed up.
Parity Technologies is the third-party service on which the hack occurred. It owned roughly 300,000 of the 500,000 ETH tokens that were frozen.
- There is still a chance to restore the frozen assets.
Although developers are opposed to an immediate fork that would edit the blockchain and restore the frozen funds, it is possible to include the edits in an already-planned fork. This means that the frozen funds could be released within a few months.
By themselves, each of these reasons is a little flimsy. Together, though, they present a pretty solid argument against panic. My guess is that investors have intuited that this hack will not affect them in any way, so it’s better to stay calm and hold on.
Daily Ethereum Chart
There is no question that this looks like a vote of confidence from investors. Add that to the fact that trading volume soared a billion dollars on Sunday, and there’s plenty of reason to believe that ETH can reach our $1,000 Ethereum price forecast in 2018.