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Analytics / Breaking News / Cryptocoins

Can Verge (XVG) Sustain Its Gains After Recent Problems?

Verge Values on Black Chart

Verge is a privacy coin with a proof of work model. It has gained a lot of traction recently for its ability to make quick massive gains during a market recovery. This was seen when Verge (XVG) registered a growth of more than 50% in less than 24 hours during the past few days in anticipation of a ‘big announcement’. It broke out of the wedge and jumped from a price of $0.027 to $0.078, almost a 3x increase in price in a matter of hours. Most investors still believe that verge is likely to make 22x gains during 2018.

However, Verge (XVG) has found itself on the verge of some serious problems on the technical side of things. Just after its recent FOMO rally, the cryptocurrency had a 51% attack which wiped more than 22% of its value thereby erasing most of the gains. Like always, the company came to its defense and termed the breach as “small hash attack” on Twitter. Verge (XVG) is known for its ineffective responses to similar situations. Recently their official Twitter account was hacked and Verge did its best to try to justify that.

Verge Values on Black Chart

It must be understood though that a 51% attack is no “small hash attack”. A 51% attack occurs when an entity gains control of more than 51% of the hashrate (network mining power). This is almost impossible on coins like Bitcoin or Ethereum. It is even more irresponsible on part of coins that claim to be privacy coins where the possibility of such concentration of control in fewer hands i.e. centralization is against their own principles. If one person or a group of persons can control the entire network, they have access to everything and if privacy cannot be ensured, then of what use is Verge (XVG).

Even more appalling than the attack is the team’s response to the problem. They have termed it as a “small attack” just like they have in the past. Now, what does this mean for the attackers and the investors? The attackers accumulated $280,800 worth of Verge (XVG) every hour while the attack lasted! That amount is probably in tens of millions by now. The more Verge Team tries to downplay the incident, the more it suits the attackers because they will be able to dump their coins on the open market without scaring off investors in order to get a good price. Investors in Verge (XVG) should know full well the repercussions of this event and various possibilities. Verge (XVG) is also one of the coins with the most pump and dump groups on the internet. Most analysts already believe that today marked the end of Verge (XVG) project. A 51% attack on a coin has the ability to cripple it and make it completely useless, that is if it already wasn’t. It is not uncommon in unregulated markets like these for teams to attack their own projects for financial gains. Most of us have heard rumors about how Mt. Gox Team attacked its own exchange in an inside job to steal hundreds of thousands of Bitcoin. The same cannot be ruled out in the case of Verge (XVG) which is why it is important to invest into projects based on their potential and use cases instead of hype. Having said that, the charts still look good for Verge (XVG) and there may be some hope after all.


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