As a result of the Bitcoin Cash split, Grayscale Investment lost $ 1.6 million in assets under management. The value of Grayscale’s managed Bitcoin Cash Trust assets (AUM) dropped after the news that the cryptocurrency would face a hard fork. According to the updates, the value of AUM was lost worth $ 1.6 million. Currently, the total AUM is $ 9.8 million and Bitcoin Trust holds the most value.
The Bitcoin Cash Hard Fork
According to Coin Dance, Bitcoin Cash has again split into two separate blockchains with activity towards BCHN, which is now a community-focused node. The data also shows that Binance, one of the world’s leading cryptocurrency exchanges, was responsible for mining the last block before the fork. Currently, miners have mined about 30 blocks on the BCHN blockchain, while none for Bitcoin ABC or BCHA.
Why Did Bitcoin Cash Go To The Hard Fork?
BCHN forked as a result of Bitcoin ABC’s decision to introduce a concept called the “Coinbase rule”. As a result, 8% of block rewards would be automatically transferred to a development fund managed by Amaury Sechet, BCHA’s lead developer. Major proponents of the BCHN blockchain believe that this is not necessary and that mining tax is not needed to develop or fund the development of the blockchain.
Since the announcement, Bitcoin Cash has traded more on exchanges, with more than $ 300 million of cryptocurrencies deposited in November. Although Grayscale added to its BCHG, the value of assets under management fell. This indicates a huge drop in price, but it doesn’t necessarily mean bad news for the cryptocurrency. Once the network is settled, it can see a recovery in the value of the Bitcoin fork. Cryptocurrency volatility is not uncommon, and rising Bitcoin activity may mean that the rest of the market is also facing positive emotions.