The event is still ongoing as hackers have already stolen over 3.5 million ETH from the DAO's coffers.
It looks like centralizing so much of a cryptocurrency's assets in one fund might be proven to be a catastrophic mistake after all.
About two hours ago users on cryptocurrency social forums started to report that the DAO was bleeding money fast for no apparent reason. Very soon after, those in charge of the DAO sounded the alarm and announced it is under attack by hackers. They called for all hands on deck, asking technically knowledgeable token holders to help stop the attack by performing various actions (further explained below).
The creator of Ethereum, Vitalik Buterin, has called on everyone to spam the system in order to jam it up and prevent any further transactions from taking place - including those of the DAO hackers. He also called on miners to increase the gas price.
As of the latest count the hackers were able to siphon off over 3.5 million (3,544,406.916983843) ETH from the DAO. This stolen loot is worth over $50 million even after the price crashed over 20%.
While the hacking and the vulnerability it exposed were on the DAO and not the Ethereum Blockchain, the event seems to shake the trust in the system and right now the price of ETH stands at only around $15.5 despite being close to $20 during the last 24 hours.
Charles Hayter, the CEO of CryptoCompare.com, commented: "This was bound to happen - what has been impressive is the speed of community reaction and solutions from Slock.it and the Ethereum Foundation. With experiments of this nature where money is involved - the 1,000 eyes looking to build it will see many more looking to exploit it."
He further explained what happened: "The best guess at the moment is that the attacker used a key exploit in conjunction with the DAO splitting function. The exploit allowed the attacker to withdraw funds from the DAO with a recursive call into a new DAO. An issue with the ethereum smart contract recursive call vulnerability. That means if he had 100 tokens in the DAO he could withdraw the underlying ether multiple times into his own DAO alongside the tokens. And then repeat the process with a new withdrawal.
The good news is that there are solutions short term and long term. At present the network is being spammed blocking the hacker from continuing to leech funds. There are fixes that could resolve the issues - the most dramatic suggestion being a hard fork - or essentially setting the clock back to before the hack. At the moment mining pools are advised by Vitalik Buterin to make a quick change blocking all network transaction by raising the gas price."
1/3 TL;DR #theDAO attack: a hardfork will retrieve all stolen funds from the attacker.
3/3 - TL;DR #theDAO attack - Since no money in the DAO was ever spent, and nothing was stolen, nothing was lost.
— Stephan Tual (@stephantual) June 17, 2016
It looks like centralizing so much of a cryptocurrency's assets in one fund might be proven to be a catastrophic mistake after all.
About two hours ago users on cryptocurrency social forums started to report that the DAO was bleeding money fast for no apparent reason. Very soon after, those in charge of the DAO sounded the alarm and announced it is under attack by hackers. They called for all hands on deck, asking technically knowledgeable token holders to help stop the attack by performing various actions (further explained below).
The creator of Ethereum, Vitalik Buterin, has called on everyone to spam the system in order to jam it up and prevent any further transactions from taking place - including those of the DAO hackers. He also called on miners to increase the gas price.
As of the latest count the hackers were able to siphon off over 3.5 million (3,544,406.916983843) ETH from the DAO. This stolen loot is worth over $50 million even after the price crashed over 20%.
While the hacking and the vulnerability it exposed were on the DAO and not the Ethereum Blockchain, the event seems to shake the trust in the system and right now the price of ETH stands at only around $15.5 despite being close to $20 during the last 24 hours.
Charles Hayter, the CEO of CryptoCompare.com, commented: "This was bound to happen - what has been impressive is the speed of community reaction and solutions from Slock.it and the Ethereum Foundation. With experiments of this nature where money is involved - the 1,000 eyes looking to build it will see many more looking to exploit it."
He further explained what happened: "The best guess at the moment is that the attacker used a key exploit in conjunction with the DAO splitting function. The exploit allowed the attacker to withdraw funds from the DAO with a recursive call into a new DAO. An issue with the ethereum smart contract recursive call vulnerability. That means if he had 100 tokens in the DAO he could withdraw the underlying ether multiple times into his own DAO alongside the tokens. And then repeat the process with a new withdrawal.
The good news is that there are solutions short term and long term. At present the network is being spammed blocking the hacker from continuing to leech funds. There are fixes that could resolve the issues - the most dramatic suggestion being a hard fork - or essentially setting the clock back to before the hack. At the moment mining pools are advised by Vitalik Buterin to make a quick change blocking all network transaction by raising the gas price."
1/3 TL;DR #theDAO attack: a hardfork will retrieve all stolen funds from the attacker.
3/3 - TL;DR #theDAO attack - Since no money in the DAO was ever spent, and nothing was stolen, nothing was lost.
— Stephan Tual (@stephantual) June 17, 2016
Binance Trial on Ice in Nigerian Court as Lawyers Demand Missing Documents
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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