It has been another exciting day in digital currency markets. Today, a hacker attacked a vulnerability to the DAO, which is a decentralized autonomous organization that was initiated on the Ethereum blockchain. The DAO was worth about $150 million USD of Ethereum before today’s hack. The hack itself looks set to drain the DAO of Ethereum. The market knows the address of the stolen ether, but nobody seems able to stop the attack.
The reaction of markets to this news has been a dramatic fall in the price of DAO shares. DAO traded on Poloniex are down by almost 50% today. Poloniex itself even crashed at one point today because of increased traffic.
It seems like at this time, Ethereum itself is intact, but DAO has been fatally wounded. The Ethereum community is debating weather to hard fork the Ethereum that been stolen so that it cannot be moved, or do nothing and plan on hunting down the entity that stole the Ethereum.
The funding rate of Ether on Bitfinex was fairly steady at just below 7.5% APR in the days leading up to this hack, but then spiked up 86% a few hours ago. I’m currently putting out Ether loans at 0.06%/22% APR.
http://hackingdistributed.com/2016/06/17/thoughts-on-the-dao-hack/
http://www.coindesk.com/will-ethereum-hard-fork/
