In June that year, the Blockchain behind Ethereum got hacked, with millions of dollars in Ethereum token being stolen by the unknown hacker who according to some, was an inside person.
The next appropriate and logical step which many crypto experts expected from the Ether community was a total overhaul in the security protocols in their blockchain as well as implement new cybersecurity countermeasures. Instead, they decided to fork the Ether Blockchain and delete any record from the hack from the new Ethereum blockchain that exists today.
Many saw that as a wrong move and feature hacks were bound to happen. As expected, the Ethereum classic wallet was again hacked last year while a security breach in November that same year saw more than $150 million declared irrecoverable on their new Blockchain.
This gave birth to many problems which have since hindered its development. The issue of experts tipping Ethereum to underperform started from there and is still expected to happen.
Ethereum has dropped 36% this year and for some reasons, experts expect is to get worse. The digital coin has seen a shortage in investments, with investors doubting its ability to grow.
Tetras Capital, a Hedge Fund based in New York which focuses on diversified Blockchain, Digital asset, and crypto exposure, this year has expressed major concern about Ethereum’s market cap. According to them, the $48 billion market cap isn’t justified, and thus mainly because its network can is extremely slow, handling just 15 transactions per second.
Other crypto experts have also linked the problem to the ever-growing traffic caused by ICOs, some of which the Ether community itself admitted were fraudulent.
Tetras started shorting Ethereum in May this year whiles its price was around $573 to $659 but now the digital coin is dandling around $465 at the time of this piece.
Many top shot investors are still on the low, with concerns about ether growing. Managing partner at Multicoin Capital, Kyle Samani stated this a year that he’s “seriously considering” shorting it, but is already betting against ripple and litecoin and isn’t ready to add more short exposure.
With wealthy and well-established investors drifting away from Ethereum, coupled with its performance on the market being somewhat hideous, the problem could only get worse. In the crypto world, some investment from some names alone can assure you a major boost.