Never a dull moment with Verge (XVG) it seems. After recent reports of a fundraising to release a new partner on their Twitter account caused a massive backlash from a section of the cryptocurrency community, Verge is back in the news. A day ago, various reports emerged of a potential hack on the mining protocol of Verge, 51% famous hack. The hacker(s) managed to take over more than 50% of the computing power on the Verge network and have since mined millions worth of XVG coins. At time of writing, the Verge explorer showed 1560 XVG coins were being mined per second (or alternatively $78 per second).
The development team has come out strongly to assure the XVG community and stakeholders at large that they ought not to fear. They gave an affirmation that the hack only affects miners but still no word has been given by the development team as to how to stop the hack.
This has however not been taken lightly by holders of the 22nd largest coin on Coinmarketcap rankings, with some of the ‘holders’ demanding the delisting of Verge from Binance exchange. Verge has been on the downward spiral in the marketing sense, however, its price continues rising which is kind of extraordinary. Does news in the crypto world travel so slowly? Or is it a case of whales manipulating the price to their benefit?
The Verge changing hack
The reports we at Cryptoglobalist are receiving is that the hack was caused by a glitch in the mining network due to bugs in the system. The hacker(s) gained 51% of the total computing power giving them power over the Verge blockchain all together. Verge proving not to be so secure, can it really promise on keeping your transactions private or private keys safe? I doubt it.
Once any Verge miner checks the Verge explorer, they will notice something abnormal in the normal mining patterns. This diagram is not exhaustive though but a small section of what was/is happening after the hacker gained control.
The diagram above shows the block that was mined, the hash rate and amount of reward in XVG. These are normal figures seen in the mining pool however the problem is on the recipients list and Timestamp column.
Miners of Verge normally mine in pools ensuring the block reward is shared amongst the members of the pool. The hacker however, is alone in the pool of recipients for the last 24 hours with no other person being able to mine XVG. The current price of XVG on major exchanges is $0.05 making the total value of one block reward close to $78. Remember this is done by the second. The hack has already crossed a day in running and mining blocks, which means the miner may have already stolen an outstanding $6million worth of Verge.
The ‘Timestamp’ part is even showing more problems for Verge development team (who are yet unknown). The column shows two separate timestamps that are 90minutes apart. The latter is the real timestamp with the hack creating a fake timestamp that confuses the blockchain into recording it as the real one. This was only enabled due to the bugs present in the Verge network.
Verge has experienced so many hacks ranging from the Twitter account, exchanges and now the mining protocol. One thing has been constant though, development team remains unknown *pun*, and the price of the coin continues to rise.
The $6 million heist so far does not have a significant effect on the coin given its massive $800 million market capitalization. However, if the hack continues at this rate, the privacy enabled coin may yet see its price drop once word gets out.