Category Archives: Ethereum

First Ether Bought, Spent On DAO Tokens

Thanks to Ethereum’s Startling Market Cap Increase I got focused this morning and rounded up some Bitcoin to put into acquiring DAO tokens.


I used version 0.74 of the wallet and after some stumbling around I managed to fund an account using some Bitcoin, then I moved the Ether to a wallet contract, the terminology for a smart wallet based on Ethereum smart contracts.

The difference between the two is the account is just a hash address protected by a pub/private key pair, while the wallet contract can be upgraded to require signatures from more than one place. Think of this as being like a business check that requires two signatures if it’s made for more than $1,000.

And this is what success looks like in the transaction log:


And this is the purchase of 100 DAO tokens:



But ….


This just doesn’t look good: A Call for a Temporary Moratorium on the DAO. This part in particular is … intriguing.

In particular, we have identified seven causes for concern that can cause DAO participants to engage in strategic behaviors. Some of these behaviors can cause honest DAO investors to have their investments hijacked or committed to proposals against their interest and intent.

After having soldiered through Heartbleed and losing a bunch of Cryptostorm tokens by selling them for PayCoin, I realize anything that isn’t nailed down WILL be stolen in short order.

There is a notional value of nearly $135 million in The DAO as I write this post, a significant fraction of Ethereum’s $911 million. There are many fortunes at the end of the Ethereum rainbow … but some of us will experience complications as we try to claim it.


Ethereum’s Startling Market Cap Increase

Here are the top 99 altcoins sized by market cap on February 19th, 2016


And here they are on May 25th, 2016. The key event behind Ethereum’s explosive growth is the creation of The DAO.


The technology at the root of The DAO’s ability to raise $150 million for a decentralized venture fund is the concept of a smart contract. If you want to make some predictions here the best thing to do would be to sort these altcoins into those that have smart contract capabilities, and those that are going to get swept aside.


This is a rudimentary graphic, but the topic is compelling. I wish I was in better position to participate in this blockchain & cryptocurrency market boom. It’s where the internet was in 1998 – we can’t begin to predict where things like The DAO are going to go.