C-bit is currently deciding on what to do about the coins and its’ own future.

We are discussing matters relating to the unusual pattern observed in our hash rate between Wednesday of
last week, where a gradual increase in our hash rate from 600-700 TH to 4-5 PH occurred over 36 hours
( this was done gradually so as not to affect the difficulty rating ) and then was suddenly and instantly
removed at 12:00 noon EST on Friday of last week just before the difficulty was to reset from 40 Million;
which then set in motion the collapse of the hash rate over the weekend.

Then on Sunday morning at appx 9:00 AM EST, when the hash rate had collapsed aprox 98% from Friday’s
Peak , C-bit’s mining pools had dropped to about 200 TH, and the difficulty level had reset from around 40
million at Friday’s peak to 2 million, a sudden mining onslaught of 2-3 PH began. Although this might not
sound like terribly much; however, coming from such a small hash rate base and against a new small
difficulty rating, its like a nuclear bomb going off. This mining blast lasted thru early Monday morning ( about
36 hours ), which resulted in the basic destruction of the C-bit system. The blast of mining was designed to
last just long enough to take advantage of the difficulty reset of C-bit. The difficulty level has since reset
upward and the miners have quit. At one point during this onslaught, the source code was actually mining
into the future by up to 8 hours, which we all know is impossible; unless, of course, one is a hacker using a
bug in the code and the vulnerability of the system against us. We have proven this to be the case with the
attack over the week-end on C-bit : a deliberate full-frontal crash of our system and resulting doubling of our
system’s coins.

Understand, this was not a weekend guy out for a stroll. This was a deliberate act of violence against C-bit.
Considering the price of our coins, and the illiquidity of the coins, there is no plausible reason for amassing
The quantity of coins gained in the attack, other than pure maliciousness or intent to destroy.

Raise the bar without raising the difficulty, then pull the legs out from under it. Let the momentum pull it
under water, then when the system resets lower, take advantage of it and mine it like crazy. When it resets,
like it did last night, stop mining, like they have. When it resets lower again, mine it again. Destroy the coin
from within. Use the coin’s low hash rate, low difficulty, and its’ very system against itself. Be enough of the
the system, and you own and control the fate of the system. You can drive it into the ground by mining all of
the coins. The attacker is using the 51% rule against C-bit very effectively each time the hash rate drops and
the difficulty rating resets lower.

It sure seems as though it was well planned to destroy C-bit; or if not to destroy, or planned, at least it can be
described as pre-meditated behavior to take advantage of a situation, since no-one could have NOT possibly
realized what was happening when you’re watching millions of coins flying by on your screen... and you don't
shut your miner OFF; especially if you care about the coin and the community. So, it can ONLY be described
as predatory behavior on the part of anyone mining at the time. PERIOD. I would love to hear anyone explain
to me with a straight face their reasoning behind the morality of receiving or keeping after-the-fact any of
their coins in this situation, EVEN if they spent BTC to mine it. Overall supply reasons also make it hard to
justify just shifting coins around to special accounts or just destroying some coins but not others. If the coins
stick around, it just creates more drag on the value of the overall coin that shouldn’t exist in the first place,
since they weren’t fairly earned. I am not sure if we can just keep destroying coins after each of these attacks,
it will get a little silly after awhile.

We also realize that there were innocent by-standers caught up in this weekend’s events. People or miners
Who had nothing at all to do with the events swirling around the exploding coins. I, for instance, have an
Antminer7 that has been running on a C-bit pool since the beginning. An Antminer7 is a relatively
Top-of-the-line Bitcoin miner. Well, I’m sorry, I guess the $ 20 in mining electricity costs over the week-
End, that it cost me for the coins I got, will mean that I don’t take my family to McDonalds tonight. My
machine is run in an off-site location, managed by a third-party, so I couldn’t just shut it off. Morality
reasons dictate that it is awfully difficult for me to justify keeping my coins. Frankly, anyone jumping on
the band-wagon over the weekend and paying for a whole bunch of hash power to mine the coins does not
have my sympathy.

What we find very interesting with this whole situation is that we can trace the beginning of the recent
Cascading of events to last Wednesday morning after the world-wide PR announcement of C-bit.  The
Gradual ramp-up of PH power can be traced to farms in China. The interesting fact is that we have no record
of any interests in either our website or our pools by the Chinese prior to this event; they just showed
up, ramped up, then suddenly left right before the difficulty was due to reset.  How they knew, we don’t
know. They then showed up again after the difficulty reset downward Sunday morning, but with smaller
mining power.

The problem that C-bit finds itself in today is the community is shell-shocked. The C-bit pools are now
Down to 28 TH as miners sit on the side-lines awaiting the dust to settle. The reasoning behind this is
Sound, but the consequences are stark. This sets in motion another cascade of collapsing hash rates and
Resetting difficulty levels. Again, this will bring in the malicious predators who will “Wash-Rinse-Repeat”
Their behavior against C-bit in a never-ending cycle; which is the very thing they want to happen, and
Plan to happen, with C-bit.

Let me repeat. This sets in motion a repeat pattern. Without enough miners supporting C-bit now, because
Everyone is shell-shocked, the pattern will continue until there are no more coins to mine. It’s a compete
failure of the system due to the 51 % Rule and the attackers know that, and they feed off of that loop. If you
look at the source code, you can see what is happening in real time. The attacks will happen again, it’s only a
matter of time.

It removes C-bit from the playing field and removes C-bit from the very reason it was created: to help
Bitcoin Core and Bitcoin Classic resolve their Block-size problem. What was started with good intentions,
Is now dazed and confused, wondering what the hell just happened. We can’t help wonder if there is a
Connection between the sudden Chinese farming interest, the manipulation of our hash rate, and our sudden
destruction. I’ve always hated coincidences -- considering how smoothly everything was running for C-bit in
the 5 weeks leading up to last Wednesday and the world-wide announcement of C-bit. We were fine until
Wednesday, then destroyed by Sunday.

We will decide what our options are after analyzing who and where the attacks originated from, of which we
already have a basic understanding. We will continue debating the future of the mined coins over the past
weekend, and the future of C-bit.  After this decision, we will let the community know our decision.
Hopefully, everyone will agree, no matter how radical our decision turns out to be.

Thanks for your patience.