According to CryptoComLearn, on August 29, 2020, the Ethereum Classic (ETC) blockchain suffered yet another 51% attack, the third such incident in a single month. The attack caused the reorganization of more than 7,000 blocks, equivalent to approximately two days of mining. At the time of reporting, it was not clear if double-spending had occurred, as in the previous attack that resulted in a loss of $5.6 million for exchange OKEx.
Network Vulnerabilities and Mitigation
The ETC development team acknowledged the attack as a known vulnerability, stating that “all lost blocks will be removed from the immature balance and we will check all payouts for dropped transactions.” In a Twitter statement, the team noted that ETC’s hash rate is only about 3% of Ethereum’s total network hash rate, making it susceptible to such attacks. They urged miners, exchanges, and service providers to “raise confirmation requirements above 7,000 for now.” Meanwhile, solutions such as “reorg caps” and related Ethereum Classic Improvement Proposals (ECIPs) are being tested and evaluated.
ECIP Controversy and Community Split
The latest attack came shortly after the introduction of two new ECIPs. The first, proposed by Input-OutputHK, introduces a checkpoint system to prevent future attacks, while the second proposes a decentralized treasury. However, the community was deeply divided over the second proposal. After heated debates, the camp led by Charles Hoskinson prevailed, pushing forward the controversial plan. Ironically, the attack occurred just as the community believed security measures were about to be strengthened.
Price Impact and Delisting Risks
Despite the severity of the technical breach, ETC’s price showed limited reaction, slipping from $6.74 to $6.71, a decline of less than 1%. However, the more significant risk is delisting by exchanges. Following the previous attack, OKEx stated it would “consider delisting ETC pending the results of the Ethereum Classic community’s work to improve chain security.” The repeated attacks may now force the exchange to act on that threat. If delisting materializes, ETC’s liquidity and market confidence could suffer further damage.
As of now, the ETC team calls for vigilance and continued security upgrades. Yet with three successful attacks in a month, the long-term reliability of the network remains in serious doubt. Whether the divided community can unite to address the root cause remains uncertain.