Did you hold your Bitcoin Cash through the fork last week ? If so, chances are, you’ve gotten two coins – Bitcoin Cash ABC and Bitcoin Cash SV. Bitcoin Cash SV, the hard forked chain of BCH created by Craig Steven Wright, Calvin Ayre, and CoinGeek, suffered a block-reorganization. Due to this action, crypto-exchanges have begun to disregard BSV.
Emin Gun Sirer, a professor at Cornell University, stated that in a decentralized blockchain protocol like Bitcoin, a self-block reorganization should not be possible. He tweeted:
“This should not be possible in a decentralized system. You can only invalidate your own block and create a new tail if you’re the majority miner. BSV is a centralized coin. Why do they bother with mining. They are clearly no good at it. Use Oracle on Craig’s laptop.”
The motivation behind the self-reorganization of SV blocks initiated by CoinGeek remains unclear. However, this could not have come at a worse time for BSV – exchanges like Kraken have signaled that SV is on very thin ice.
Emin Gun Sirer stated that the ability to invalidate one’s own block suggests the system used by SV is both centralized and poorly designed. “More the miner who overwrote block 557301 was the same miner who overwrote it in the first place. BSV have no idea what they are doing. You all knew this. Don’t invest with a conman. Not much else needs to be said on this front. This should not be possible in a decentralized system. You can only invalidate your own block and create a new tail if you’re the majority miner. BSV is a centralized coin.”
Sirer explicitly called out the development team behind SV – stating that they do not know nor understand the consequences of their actions and the indication of a highly centralized move to self-reorganize a block.
“Their blockchain’s tail just got rewritten, as if someone ripped out the last few pages and wrote over them. This is an indication that their system parameters are outside the safety envelope of their network. In short, they don’t know what they’re doing.”
Bitcoin Cash underwent a hard fork on November 15th. The price of BSV has dropped from $170.00 to $66 – 61%. The cryptocurrency market as a whole has dropped substantially in the last week, but in contrast, Bitcoin dropped around 30%, and Bitcoin Cash ABC dropped by 33%.
CoinGeek’s decision to reorganize two blocks without solid reasoning to justify its actions has put Bitcoin Cash SV in a precarious position – it is now facing delisting from several exchanges that fear network instability. Kraken has stated that Bitcoin SV, even before the block reorganization, had various red flags and that investors should be concerned.
“Bitcoin SV does not meet Kraken’s usual listing requirements. It should be seen as an extremely high-risk investment. There are many red flags that traders should be aware of,” the Kraken team said. Other red flags include the lack of support from wallets, miners, block explorers, and representatives threatening other communities.
“Custodial losses taken on due to attacks originating from nChain or its affiliates will be socialized among all BSV holders on Kraken. Given the volatile state of the network and threats that have been made, Kraken cannot guarantee perfect custody of BSV,” the team added.
There are other exchanges outside of Kraken who have expressed concern towards BSV. Controversial activites on the SV chain could trigger other exchanges to consider delisting the cryptocurrency in the near future.
What do you think? Do you plan on holding onto your BSV? Or are you cutting your losses? Let us know on Facebook page!
