Grayscale Assures Investors: Ethereum Classic Trust Funds Not at ‘Direct Risk’

In the wake of a 51 percent attack on ethereum classic (ETC), the manager of an investment vehicle that holds the cryptocurrency has been fielding inquiries from investors looking to understand if the underlying assets in the fund are safe, CoinDesk has learned.

On Monday, the day after the reorganization of transactions on the ethereum classic blockchain came to light, Grayscale Investments, the creator of the Ethereum Classic Investment Trust (ETCG), says it sent emails in response to “a few” clients asking for clarity on what the attack meant. A copy of an email response to such an inquiry was obtained by CoinDesk.

While mostly providing a general explanation of how such attacks work, Matt Beck, a product development and research associate at Grayscale, wrote in the email: “The greatest risk this poses is to the integrity of the Ethereum Classic Network, as people may be less inclined to accept ETC given the increased double-spend risk. However, the coins within the ETC Trust are not at direct risk of theft or double-spending.”

Reference: https://www.coindesk.com/grayscale-ethereum-classic-investment-trust-51-percent-attack-etc-etcg

Share this:

Leave a Reply

Your email address will not be published. Required fields are marked *