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Breaking News / Cryptocoins

Hackers Put An Abrupt End To The Reign Of Verge

Through the end of March and the start of April, Verge has performed well, very well in fact.

In the sea of uncertainty that is the cryptocurrency market, Verge has kept itself afloat with a genius use of marketing, inspiring their fans to hold on and watch its price sky rocket.

Late last night, reports surfaced of a large attack that had taken place on Verge’s platform. The attack, encouraged a decrease in the value of the currency by 23%, with it down a further 11% this morning. Verge has almost stooped down to the same level it was at this time last year, virtually non-existent.

Yesterday, the Verge team tweeted saying that a small hash attack had taken place over a three-hour period, reports today suggest that the attack that took place was something known as a 51% attack.

A 51% attack occurs when a single entity manages to take control of more than half of a networks computing power, hence the number 51.

The attack, was used to constantly over-mine the network and extract currency from the blockchain, miners can use techniques such as fake time stamping to achieve this, by taking advantage of vulnerabilities in the way the blockchain works.

Allegedly, this attack managed to lift around $280,000 per hour, meaning that the attackers will have earned a considerable amount of money from this, leaving Verge in a very difficult situation going forward. Especially considering there’s going to be a big announcement made by the Verge team on the 16th of April, with regards to a new partnership established as a result of their recent crowdfunding campaign.

Can Verge recover from this?

Well, that depends on a few things I guess, first of all, if people withdraw from the brand then they will struggle to get new investors on board, especially considering its price is dropping and also, the vulnerabilities within the Verge system are as a result of their code (meaning this should never have happened). Therefore, people will be both reluctant and afraid to invest in Verge, making recovery difficult. Maybe, if their new partnership does take place then perhaps their new partners can inject some funding, and some life back into the company.

Overall though, you do have to wonder about how much of a coincidence this is? Considering the hype that Verge have put up over the past few weeks in the lead up to their big announcement. Many people are saying it, many people are thinking it, but there is something very fishy about this.

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As a key writer for Crypto Daily, Nathan’s role entails the creation of cutting edge news articles, reviews, press releases and general content creation. Nathan’s stories strive to include the most up-to-date cryptocurrency news and affairs, contributing to Crypto Daily’s growing network. Nathans previous experience as a researcher, working on University standard projects means he has a wealth of experience in writing, from academic thesis publication to independent research projects. By applying these research skills to Crypto Daily, we can ensure the content creation team really do know what they are talking about.