The launch of Ethereum Classic and its support by the community has raised a lot of questions. More particularly, what about the exchanges where users can buy Ethereum with Bitcoin and then have it sold back to double their holdings? Apparently, such a scenario is possible when using Coinbase, GDAX, and Poloniex, according to several Twitter users.
The concept of this entire procedure is very simple and straightforward, although it is not advisable to do so. One Twitter user mentioned how it is, in theory, possible to double one’s Bitcoin by using Ethereum and Ethereum Classic. To pull these attacks off, however, users will need to verify their identity with at last two out of three platforms involved. Do keep in mind these companies can sue users for exploiting this loophole if they wanted to. Tricking Coinbase And GDAX
It is not entirely surprising this method involves two exchange platforms which do not support Ethereum Classic at this stage. In fact, both GDAX and Coinbase have been dabbling around with Ethereum for a just a short while. As a first step, Bitcoin holders would need to transfer BTC funds to their Coinbase wallet. Once the funds cleared, send it from Coinbase to the GDAX exchange as soon as possible.
Users can exchange Bitcoin for Ether on GDAX – albeit they can do so on Coinbase as well – and the obtained ETH funds need to be transferred back to Coinbase. From that wallet, users should then sluice the funds to Poloniex, in the hopes of having their account credited with both ETH and ETC at the same time.
Pulling off this exploit is still possible if one is lucky enough to buy Ether from Coinbase, which were not moved before the hard fork. Since the exchange put zero preparation […]
