At the end of July this year, Bitcoin Cash (BCH) saw a price surge of 39%. The result of this, is a minimum of 10 BCH wales have outright left the network, probably selling or trading away their millions’ in holdings.
Loss Of Ten BCH Whales
Ali Martinez stands as a trader and technical analyst, and showed data from Santiment, a data analytics site, in a recent tweet.
Since Aug 1, roughly 10 whales have left the network, representing a 5.6% decline. pic.twitter.com/uriR5j8K8q
— Ali Martinez (@satoshilatino) August 7, 2020
This data makes it clear that the number of investors that hold anything between 10,000 and 100,000 BCH, which is about $3-30 million in value, has dropped down by ten since the 1st of August, 2020. This massive drop in price comes just after the token surged 38.7% in value. The coin saw a three-month high of $311.34 by the end of July, having been $224.46 on the 17th of July prior. This, obviously, heavily implies that BCH wales, at least ten of them, have sold their respective holdings.
Flaws In The Machine
As it stands now, BCH is the fifth-largest cryptocurrency out there by virtue of market capitalization, recording a market cap of $5.6 billion. Trailing just under it, the Chainlink (LINK) crypto stands with a capitalization of $4.6 billion. As it stands now, BCH stands with a value of $307.84 in value, having gone up in the past 24 hours.
Bitcoin Cash stands with a strange predicament, as the network itself is vulnerable to 51% attacks. This is due to its use of the SHA256D algorithm, which is the same as Bitcoin’s. However, where Bitcoin has massive reserves of hashing power, making it next to impossible for such a coordinated 51% attack, BCH holds only 5% of BTC’s hashing power. This, in turn, has made it susceptible to 51% attacks, which it’s suffered in the past.
Innovations Ever Onward
The BCH community was quick to try and plug this vulnerability, however, and have already proposed to change the algorithm as part of its November upgrade. It was on the 6th of August when the developers finally proposed a compromise between two proposed solutions. This compromise will see the introduction of “Aserti3-2d” difficult adjustment within the network, as proposed by Jonathan Toomin, a lead BCHN Maintainer. Alongside this, a new infrastructure funding plan will be implemented, as well.
What this means for the future of BCH is unclear. It’s no secret that BCH has had a few rough patches, but this doesn’t mean some innovations could see the cryptocurrency recover and reach new heights.