The recent Bybit hack, resulting in a loss of $1.4 billion, has raised significant concerns in the crypto community. BitMEX co-founder Arthur Hayes proposed rolling back the Ethereum network to recover the stolen funds.
The Proposal to Rollback Ethereum
Arthur Hayes, a prominent ETH investor, addressed Ethereum co-founder Vitalik Buterin suggesting that the network should undergo a rollback to assist Bybit in recovering the stolen funds. Hayes reminded that Ethereum was rolled back in 2016 after the DAO hack, which led to the creation of a fork, splitting the network into Ethereum and Ethereum Classic to recover $60 million.
Complexity of an Ethereum Rollback
The idea of a rollback has sparked mixed reactions in the crypto space. Some believe it could prevent bad actors from benefiting, while others argue that Ethereum’s ecosystem is now too complex, deeply connected to stablecoins, Layer-2 solutions, and other projects. Gautham Santhosh, co-founder of Polynomial.fi, pointed out that a rollback could break many essential parts of the Ethereum ecosystem, making it an unrealistic option. Meanwhile, Sina 21st Capital raised concerns about Ethereum’s future: if it rolls back, it risks losing decentralization, but if it doesn’t, the stolen funds remain with hackers like North Korean groups.
Impact on Ethereum Price
Following the news of the Bybit hack and the debate over a possible rollback, Ethereum’s price has dropped by 3.7% in the last 24 hours. However, it is still moving within the $2,600 to $2,800 range. Ethereum is now at a key resistance level of $2600, which includes the 200-day moving average and the lower boundary of a descending wedge. If it fails to break through, ETH could see further declines towards the $2,500 mark.
The Bybit hack has highlighted the seriousness of security issues in the crypto space. The discussion of an Ethereum rollback brings forth questions about balancing decentralization with investment protection.
