Blockchain ETFs Launched on Nasdaq

Reality Shares Advisors and Amplify Trust ETF launched at Nasdaq
18 January 2018   360

Yesterday, 18.01.2018, for the first time on the Nasdaq exchange, two exchange-traded investment funds (ETF) came out, which will invest exclusively in the blockchain startups. One of them is established by Reality Shares Advisors, the other is Amplify Trust ETF. This is reported by CoinDesk.

Both funds appeared on the Nasdaq stock exchange at 9:30 am North American Eastern Time (EST). Nasdaq NextGen Economy (BLCN, ETF-fund company Reality Shares) began to trade at a rate of 24.2 dollars, and Transformational Data Sharing (BLOK; ETF-fund company Amplify Trust ETF) - closer to $ 20.

The fact that both funds will work exclusively with the blockchain companies, became known as early as in November 2017. In addition, the prospectuses noted that both funds will invest only in those blockchain companies whose market capitalization exceeds $ 200 million, and a six-month average daily trading volume of at least $ 1 million.

According to Kien Salehizade, an analyst at Reality Shares, his company, along with Nasdaq, has developed an index that will track blocking start-ups for future investments.

We wanted to do a blockchain technology-related ETF, so not another bitcoin fund but something that takes advantage of the underlying ecosystem. So we developed a methodology in-house which measures seven quantitative factors and we run those factors on a universe of publicly traded [data].

Kian Salehizadeh

Analyst, Reality Shares

He also noted that initially in the name of the fund was the word "blockchain", but at the request of the Securities and Exchange Commission of the United States, it had to be removed.

In addition, the Commission has not formally approved the emergence of funds in the listing on the Nasdaq. But, according to Salehizadeh, according to the current legislation, in the absence of official disapproval, their listing on the exchange is approved automatically. The Commission had 75 days to disapprove or object to the fact that the funds were listed on the stock exchange. But there were none, so funds can be placed on the Nasdaq.

Bitcoin Gold hit by Malicious Miner`s Double Spend Attack

An evil-minded miner efficiently made a double spend attack on the Bitcoin Gold network, making BTG at least the third altcoin to succumb to a network attack
23 May 2018   122

Edward Iskra, Bitcoin Gold director of communications first admonished clients about the attack on May 18, reporting that an evil-minded miner was using the exploit to steal means from cryptocurrency exchanges.The miner bought at least 51 percent of the network’s total hashpower, which provided them with temporary control of the blockchain. Gaining this much hashpower is extremely expensive — even on a smaller network like bitcoin gold — but it may be monetized in tandem with a double spend attack.

The attacker, after getting the control of the network, started depositing BTG at crypto  exchanges while also intending to send those same coins to a wallet under their control. Generally, the blockchain would resolve this by including only the first transaction in the block, but the attacker managed to reverse transactions as they had majority control of the network.

As a result, they were able to invest funds on exchanges and withdraw them again soon, after which they repealed the initial transaction. This way they could send the coins they had primarily deposited to another wallet. 

An address of bitcoin gold connected with the attack has got more than 388,200 BTG since May 16 (basically from transactions it sent to itself). All of those transactions were associated with the double spend exploit, the attacker could have stolen as much as $18.6 million worth of funds from exchanges. The last transaction was sent on May 18, but the attacker could resume it if they still have access to enough hashpower to reach the control of the blockchain.

Bitcoin gold’s developers recommended exchanges to resist the attack by reaching the number of confirmations acquired before they lended deposits to client accounts. Blockchain data displays that the attacker reversed transactions as far back as 22 blocks, allowing developers to advise raising confirmation requirements to 50 blocks.