This is basic web security, nothing to do with cryptocurrencies. If you put up a bank account on your website and many people send money to it, you make yourself a target. Many people would want to replace your bank account number with theirs so they get the money. If they know there will be a large and fast sending of cash, this gives them incentive and time to find some security hole in your system.
If the hackers really did redirect the domain name to point to their own server, what kind of a hosting company was the CoinDash team using? Obviously the hosting company is an extremely important part of the security and if they didn't have a good one, how did people send them so much money? Don't they check for these things before investing lots of cash?
I don't know too much about smart contracts so I'd be curious to learn how they might get around these problems.
Yes I totally agree.
This has nothing to do with the security of ICO's or cryptocurrencies in general.
I just wrote that critics might use this as an excuse to talk negatively about the crypto markets.