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Verge (XVG) Loses Over $1 Million in a Recent Hack

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Verge

In the fast-paced world of digital currency, factors like tight security protocols and anonymity play a vital role in investors’ decisions. Initially introduced as DogeCoinDark, Verge has come a long way from its fledgling stage. Operational from 2014, Verge was rebranded in 2016 and its value soared exponentially in the subsequent months.

Verge, which has been accepted in the mainstream crypto space for its tight security features, boasts a transparent ledger that allows users to keep a track of their transactions while it protects users’ real identities. As a privacy-centric currency, Verge has created a lot of excitement, drawing thousands of investors to its platform. Recently, Verge made headlines for its partnership with porn.hub, which now accepts verge as a payment option.  If you are updated with the developments on this blockchain, you are likely to be aware of the hack which took place in April. As per the latest updates, Verge (XVG) has succumbed to a similar attack for the second time in less than two months.

Going by the report published on BitcoinTalk, the attacker has forked the blockchain through a striking 51% DDoS attack. It seems that the attacker exploited a bug in the XVG code by setting a false timestamp on blocks and mining new blocks in the meantime. The following segments explain the details of the hack that has alarmed many users across the community.

Verge Has Been Attacked for the Second Time in Two Months

The past two months have been awful for Verge which has suffered some major attacks from hackers. In a tweet explaining the nature of the hack, the Verge coin team reported, “it appears some mining pools are under DDoS attack, and we are experiencing a delay in our blocks, we are working to resolve this.” With big names, including PornHub, latching themselves to Verge blockchain, Verge offers the highest level security to its users. Considering Verge’s claim as a privacy coin, the attacks sound rather ironic.

At first glance, the attack can be seen as an attempt to disrupt the transactions by overloading the network. It goes without saying that the DDoS attack was used to stop other people from accessing resources within the blockchain.  In what can be considered a massive hacking incident lasting a couple of hours, XVG has lost more than $1.7 million. Tracing the recent developments of Verge, a similar attack was reported last month, wherein over 25,000 XVGs were stolen.

Ocimer, or the Bitcoin.org user who had notified about the attack, revealed that the attack was a result of the same glitch that has been exploited by the attackers last time.

The Vulnerabilities on Verge Blockchain

The privacy-centric cryptocurrency is not entirely free from limitations, as it has suffered some tough luck when it comes to security breaches. From Verge’s twitter account hack to exposing users’ IP addresses due to internal vulnerabilities, Verge has seen it all. The limitations on the blockchain haven’t prevented Verge from engaging in serious business. Speaking of the security breaches and internal vulnerabilities, mention can be made of three notable features of Verge that put it at risk of potential attacks.

  • To begin with, Verge uses Dark Gravity Wave algorithm, which adjusts the difficulty of mining each XVG block. This is not the same with Bitcoin, as it adjusts its difficulty after mining 2016 blocks.
  • Verge runs on multiple mining algorithms, which are responsible for splitting the hashrate security among each other, depending on the applications.
  • One of the major loopholes on the blockchain is allowing users to use incorrect stamping. This is why getting the right timestamp can be quite challenging sometimes, and since the correct time stamp cannot be identified, miners are can use full advantage of it.

To execute the attack, the attacker submitted multiple blocks containing an incorrect timestamp, which made the executives believe that blocks weren’t coming in the right intervals. This prompted the algorithm to lower its difficulty by a huge margin, almost on the order of 99.999999%. As Verge’s hashrate was forked among five different algorithms, the attacker could pull off the 51% attack, redirecting all the coins to his/her account.

In Summary

At first blush, there are not too many differences between the two attacks. The most prominent difference, however, is attacking the two algorithms at the same time, which was not the case during the first attack. The attacker has used Scrypt and Lyra2re to accomplish the hack this time, causing Verge to lose over one million worth of XVGs.  While the users reported of disturbances within the network, it couldn’t be determined whether the explorer made an attempt to block the attack or the code of the explorer was facing problems keeping up with the mining pace. As of now, above $1.7 million worth of XVG has been mined by the hacker.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Altcoins

XNO Token of Xeno NFT Hub listed on Bithumb Korea Exchange

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Hong Kong, Hong Kong, 25th January, 2021, // ChainWire //

Xeno Holdings Limited (xno.live ), a blockchain solutions company based in Hong Kong, has announced the listing of its ecosystem utility token XNO on the ‘Bithumb Korea’ cryptocurrency exchange on January 21st 2021.

Xeno NFT Hub (market.xno.live ), developed by Xeno Holdings, enables easy minting of digital items into NFTs while also providing a marketplace where anyone can securely trade NFTs.

The Xeno NFT Hub project team includes former members of the technology project Yosemite X based in San Francisco and professionals such as Gabby Dizon who is a games industry expert and NFT space influencer based in Southeast Asia.

NFT(Non-Fungible Token) technology has recently gained huge focus in the blockchain arena and beyond, making waves in the online gaming sector, the art world, and the digital copyrights industry in recent years. The strongest feature of NFTs is that “NFTs are unique digital assets that cannot be replaced or forged”. Unlike fungible tokens such as Bitcoin or Ether, NFTs are not interchangeable for other tokens of the same type but instead each NFT has a unique value and specific information that cannot be replaced. This fact makes NFTs the perfect solution to record and prove ownership of digital and real-world items like works of art, game items, limited-edition collectibles, and more.

NFTs are already being actively traded in markets globally. For…

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Altcoins

Should Crypto Projects Devote Resources to Community Growth and Marketing?

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2020 has been an incredible year for crypto as investors have generated windfall profits and crypto projects have seen their businesses gain the spotlight they’ve been looking for.  While Bitcoin has received most of the attention after major institutional investors announced they were accumulating the increasingly scarce asset, many altcoins have also seen their fair share of glory.  When looking at all the big winners of the past year, the first project that probably comes to mind is Chainlink, having appreciated by more than 550% YTD and now valued at over $4.5 billion.  But, the actual biggest winner of the year is HEX with a YTD return of over 5,000%.

I mention both of the above projects as they have each taken slightly different paths to achieve greatness.  Chainlink has devoted resources toward building a fundamentally sound business with many strategic partnerships while HEX has spent vast sums of money on marketing and promotion.  Both approaches are valid, but one thing is certain, it is absolutely imperative for crypto projects to let the crypto community know what makes them special.  Of course, one of the reasons that makes crypto so valuable is the powerful blockchain technology that most projects are utilizing.

Cryptocurrency vs. Blockchain Technology

It’s important to make a distinction between blockchain technology and cryptocurrency.  Although they are often used interchangeably, they are different.  Blockchain technology and crypto were both created after the 2008 financial crisis, but cryptocurrency…

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Altcoins

XENO starts VIP NFT trading service and collaborates with contemporary artist Hiro Yamagata

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Hong Kong, Hong Kong, 24th December, 2020, // ChainWire //

The XENO NFT Hub (https://xno.live) will provide a crypto-powered digital items and collectables trading platform allowing users to create, buy, and sell NFTs. Additionally it will support auction based listings, governance and voting mechanisms, trade history tracking, user rating and other advanced features.

As a first step towards its fully comprehensive service, XENO NFT Hub launched a recent VIP service to select users and early adopters in December 2020 with plans for a full Public Beta to open in June 2021. 

“NFTs are extremely flexible in their usage, from digital event tickets to artwork, and while NFTs have a very wide spectrum of uses and categories XENO will initially focus its partnership efforts and its own item curation on three primary areas: gaming, sports & entertainment, and collectibles.”, said XENO NFT Hub president Anthony Di Franco.

He also added “This does not mean we will prohibit other types of NFTs from our ecosystem However, it simply means that XENO’s efforts as a company will be targeted into these verticals initially as a cohesive business approach.”

Development and Procurement Lead, Gabby Dizon explained, “Despite our initial focus, we found ourselves with a unique opportunity to host some of the works of Mr. Hiro Yamagata. We are collaborating with Japanese artist Hiro Yamagata to enshrine some of his artwork into NFTs.”

Mr. Yamagata has been…

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