Bitcoin Stabilizes while Ether Suffers



As mentioned above, the Ethereum technology can be used to make Decentralize Autonomous Organizations; in early 2016 a DAO named “The DAO” was launched. The objective of The DAO was to create a digital venture capital firm which had no human intervention, the investors would send the money to The DAO and in turn receive the tokens and the tokens would allow them to vote how the DAO dispersed their funds.

To fund the organization initially, a crowdfunding campaign via token sale was launched which still remains one of the largest crowd funded campaign to date as the fund had raised more than US$150 Million by late May 2016, US$50 Million of which were in the form of Ether (the value token of Ethereum Blockchain).

Briefly after the funds had been raised, The DAO organization was attacked anonymously and the hacker stole US$50 Million worth of Ether at that time. The attack resulted as technical flaw in the implementation of The DAO organization and not the Ethereum platform itself. Either way, the founders of Ethereum were then pressurized to deal with this debacle.