Controversy over the Bitcoin Cash (BCH) Hard Fork continues after Bitcoin SV (BSV) suffered a blockchain reorganization and several exchanges issued a warning about its instability and possible exclusion.
The Bitcoin Cash fork supported by Craig Wright and the nChain firm underwent a block reorganization, resulting in transactions overwriting into two different blocks.
The real reasons that led to the self-reorganization of SV blocks initiated by CoinGeek are yet to be known. However, the most likely explanation is that it could have been due to an overload in transaction’s activities, caused by a planned effort test that did not go well. Although it has also been speculated that it could be because a malicious external attack.
In this regard, Cornell University professor and crypto commentator Emin Gün Sirer harshly criticized Bitcoin SV for his new experiment, saying it was centralized and poorly designed.
“Dramas per second are increasing on BSV: they just experienced a multiblock reorg at block 557301”, Gün Sirer said.
“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”, he added.
As if that were not enough, he mentioned the inability of the SV development team to understand the consequences of their actions and the highly centralized movement indication to reorganize itself into 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”, he stated.
The controversial decision to reorganize two blocks brought strong possibilities for the BCH version supported by Wright to be removed from the listing in many exchanges, due to its network instability.
One of them was Kraken. A spokesman for the San Francisco-based exchange said before the reorganization that investors should be concerned about the many warning signs surrounding SV.
“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”, he said. “Given the volatile state of the network and the threats that have been made, Kraken cannot guarantee the perfect custody of BSV”, he added.
Similarly, numerous exchanges have also expressed concern about SV, since the miners cause millions of dollars in losses each time they extract the asset.
All this could lead to the definitive exclusion of the aforementioned currency from the exchanges in the near future.
The opposite is true for Bitcoin ABC, which has received support from numerous exchange platforms like BitMex, Binance, Poloniex, Coinbase and Bitpay even before the Hard Fork.