It has only been a while since Bitcoin Cash SV came into existence after the hard fork, and now it has run into some serious trouble. The new cryptocurrency created by CoinGeek and Craig Wright camp recently suffered a block reorganization, and experts are now alleging that this reorganization was performed by CoinGeek itself on its own blocks. This kind of self-reorganization should not be possible in any decentralized protocol, and as a result, some exchanges are now mulling to delist BCH SV from their platforms.
The allegation of self-reorganization has been raised by Peter Rizun, the Chief Scientist of Bitcoin Unlimited. Emin Gün Sirer, a professor at Cornell University, also agrees with the view of Peter Rizun. Emin said in his tweets that a system allowing someone to invalidate their own blocks reflects not only centralization but also poor design. He said:
2. 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.
Why do they bother with mining. They are clearly no good at it. Use Oracle on Craig’s laptop.
— Emin Gün Sirer (@el33th4xor) November 19, 2018
Moreover, he also stressed that the members of BCH SV team don’t know the consequences of what they’re doing:
“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.”
The motivation behind this reorganization remains unclear, but it has certainly not gone down well in the community. The price of Bitcoin Cash SV has dropped from $170 to $66 since its creation on 15th of November, a drop of 66%. Moreover, now there’s word that some exchanges are considering to delist it from their platform. For example, Kraken team had said before this block organization that there’re many red flags surrounding Bitcoin Cash SV. They had said:
“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. Custodial losses taken on due to attacks originating from nChain or its affiliates will be socialized among all BSV holders on Kraken. Given the volatile state of the network and threats that have been made, Kraken cannot guarantee perfect custody of BSV.”
Besides Kraken, Binance CEO Changpeng Zhao has also made it clear that he doesn’t like forks. Other exchanges have not been as vocal, but they too may consider the delisting option if there’s more unnecessary drama to this saga.