The collection of white hat hackers, calling themselves the Robin Hood Group, apparently attempted to dump DAO funds they held in ETC in an attempt to undermine the cryptocurrency by crashing its price.
The Robin Hood Group (RHG) was originally formed to benevolently hack the DAO to secure the remaining ether inside of it. The collection of hackers stole the funds with the stated purpose of keeping the ether safe until after the hard-fork, which was implemented to both reverse the hack and fix the loophole that allowed the hack to occur in the first place.
This was an act that many in the community would likely consider noble and good. However, while it could certainly be argued that these do-gooders’ pre-fork actions deserve to be lauded, any parades that were planned should probably be postponed.
Some news is coming out that these same people made some shady decisions after the fork. The way in which the white hat hackers “secured’ the funds was by placing them in child DAOs. After the fork, these child DAOs remained on the ETC chain, which apparently the original hacker is now working his way through to regain some of the funds he lost after the fork.
Anyway, at some point these funds ended up on different exchanges. A large amount of ETC was transferred across a variety of exchanges, with 2.9 million etc ending up on Poloniex, some on Kraken, some on Bittrex and some on Yunbi. While Poloniex and Kraken froze these funds fairly quickly, the other two exchanges, Bittrex and Yunbi, did not.
Dumps on both platforms occurred at the same time, 10th of August at 8 AM (GMT+2). These all-out dumps created some complications for the sellers, and some argue that it was simply an attempt to crash ETC’s price that failed.
This belief seems to be justified by the fact that quite a few within the Ethereum Foundation team were a part of the Robin Hood Group.
What do you think of the ETC that was dumped? Do you think it was a designed attempt to crash ETC’s price?
Images Courtesy of Ethereum Classic, Alex Van De Sande
Trevor is a writer at Bitcoinist. He is currently attending his first year at the University of Wisconsin-Fox Valley, with a selected major in Economics. Subscribes to the Austrian school of economics.
1 Hova Villas Brighton & Hove
BN3 3DH United Kingdom
All rights reserved by Bitcoinist Ltd. | 2016.