Bitcoin Holders Risk Losing Real Coins in BIP-110 Fork Replay Attack

Bitcoin holders are at risk of losing their real coins if they sell new tokens from a potential BIP-110 fork, warns developer Kevin Loaec. This is because selling the new coins could trigger a replay attack that also spends the seller's real Bitcoin on the main chain.

The fork is tied to a proposal called BIP-110, which aims to remove non-payment data from Bitcoin transactions for a year. However, this will create duplicate balances on two chains, tempting holders to sell the new coins for what appears to be free money.

Developers warn that without built-in replay protection until at least early September, the safest course of action is for non-experts to avoid moving their coins during the potential split. This means leaving the coins alone and not selling them, as doing so could result in losing real Bitcoin.