Verge Hacked for the Second Time


The Verge network has slowed down in an apparent DDoS attack. Executives have said the delay being experienced on the Verge blockchain may be down to some mining pools experiencing DDoS attacks.

The events raise security concerns among users. Data from CoinMarketCap shows that the coin has  lost more than 14% of its value in the last 24 hours. The drop has been more dramatic in the last few in the wake of the attacks.

A unit is now trading at $0.44 with market capitalisation currently standing at $662.5 million, data from CoinMarketCap shows. The virtual currency is ranked 31st by market capitalisation.

“It appears some mining pools are under DDoS attack, and we are experiencing a delay in our blocks. We are working to resolve this,” a tweet from Verge said.

However the problem could be deeper. Tokens worth $35 million may have already been stolen as a result, some reports indicate. The glitch may have allowed several blocks to be mined just one second apart.

Not the First Time

It is not the first time the exploit is happening. Only last month 250,000 XVGs were lost in a similar prompting a hard fork. Verge lost a quarter of its value in April after the attack.

Bugs in the XVG code allowed malicious mining pools to set false timestamps on mined blocks. The network is thus misled to think the last block mined on that algorithm was one hour ago.

buy verge coin

This allowed the attacker to control the hashrate and therefore the possibility to modify transactions. A block is usually assigned to a different algorithm to prevent miners from monopolising the network.

51% attacks as they are called can be used to prevent transactions from being confirmed. Confirmed transactions can also be rolled back meaning the attackers can double spend the coins.

Reddit user ocminer says Verge had not done enough to fix the bugs in its code.

“Attackers now simply use two [algorithms] to fork the chain for their own use and are gaining millions,” he said in a comment.

The privacy focussed cryptocurrency has now been experiencing several issues including its Twitter account being taken down.

There are also claims that the network could have inadvertently users’ IP addresses which puts its capability as a privacy coin into question. The claims have however not been proven.

Some users are however seeing an opportunity to buy the dip.

Leave a Reply

Notify of

Risk Warning: Investing in digital currencies, stocks, shares and other securities, commodities, currencies and other derivative investment products (e.g. contracts for difference (“CFDs”) is speculative and carries a high level of risk. Each investment is unique and involves unique risks.

CFDs and other derivatives are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how an investment works and whether you can afford to take the high risk of losing your money.

Cryptocurrencies can fluctuate widely in prices and are, therefore, not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework. Past performance does not guarantee future results. Any trading history presented is less than 5 years old unless otherwise stated and may not suffice as a basis for investment decisions. Your capital is at risk.

When trading in stocks your capital is at risk.

Past performance is not an indication of future results. Trading history presented is less than 5 years old unless otherwise stated and may not suffice as a basis for investment decisions. Prices may go down as well as up, prices can fluctuate widely, you may be exposed to currency exchange rate fluctuations and you may lose all of or more than the amount you invest. Investing is not suitable for everyone; ensure that you have fully understood the risks and legalities involved. If you are unsure, seek independent financial, legal, tax and/or accounting advice. This website does not provide investment, financial, legal, tax or accounting advice. Some links are affiliate links. For more information please read our full risk warning and disclaimer.