How Can a Large, Unexpected Network Event (Like a Hard Fork) Impact the Crypto Basis?

A large, unexpected network event like a hard fork can drastically impact the crypto basis by creating two distinct assets from the original. This sudden, unpriced change introduces extreme uncertainty and volatility in the spot market.

Since the futures contract is tied to the pre-fork asset or an index that may not accurately reflect the post-fork market, the basis can become highly volatile and unpredictable, severely impairing the effectiveness of any hedge.