The drop came amid news Friday morning that new "decentralised venture capital" smart contract token DAO - which touts itself as the first Decentralized Autonomous Organization, had an exploit that was weeks old which went unpatched and caused a hacker to syphon over a million ETH, nearly $50 million.
The response from Ethereum Foundation lead Vitalik was to demand a rollback, as released in a pastebin containing logs from a Skype group chat between exchange representatives and cryptocurrency developers. The supposedly "decentralised" cryptocurrency Ethereum, was suddenly proposing hardforks in order to bail out a bug in theDAO, one of their smart contracts. This was unprecedented and seemed a lot more like Ripple and not so much like bitcoin.
The market continues to fall and is clearly not pleased with such control behind exerted behind the scenes between high ETH and DAO holders.
Traders and commentators are calling this a Too Big To Fail moment, where millionaire ETH holders heavily invested in DAO, including Vitalik, need to bail out and protect these $50 Million from being taken, in order to save their own butts. Unfortunately, those who had prior failed smart contracts which lost money, or prior hacks where Ethereum was lost, won't be getting any special forks to get their money back. They just weren't big enough, or weren't directly connected to Ethereum founder Vitalik.
Where Ethereum fails, Bitcoin thrives. A robust and conservative blockchain, the original cryptocurrency bitcoin has been surging in price, here's the latest 12 hour chart out of Huobi CNY:
Stay tuned, be careful with Ethereum and trust in bitcoin above all.