Home Alt Coins Ethereum Classic Blockchain Suffers 51% Attack, Exchanges React

Ethereum Classic Blockchain Suffers 51% Attack, Exchanges React

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Ethereum Classic, an offshoot of Ethereum with an general market capitalization of $531 million, suffered a 51% assault, which led to double spend. At press time, the asset is buying and selling at $5.05, marking a drop of just about 10% throughout the final 48 hours.

The assault comes a number of weeks after the Ethereum Classic most important improvement crew was shut down resulting from an absence of funding.

$500,000 Worth of Tokens Stolen

Earlier this week, the Ethereum Classic (ETC) blockchain was attacked by a hacker who gained about 60% of the blockchain’s computing energy. The hacker went on to steal – and subsequently spend- 85,000 ETC tokens (price roughly $500,000), then rolled the blockchain again with the huge quantity of computing energy in order that the spent tokens could possibly be recovered.

Gate.io confirmed that the hack occurred between 00:40 and 04:20 on January 7, and that each one transactions concerned within the hack had been confirmed on the ETC blockchain.

Reactions from Major Crypto Exchanges

In the wake of the assault, a lot of main cryptocurrency exchanges have already halted the buying and selling of ETC tokens on their platforms. On Monday night, Coinbase made a shock announcement that it’s going to briefly disable all receipts and transfers of ETC, though the motion is not going to have any affect on the flexibility of consumers to purchase and promote the digital asset.

In a blog post, Coinbase mentioned, “The Coinbase team is currently evaluating the safety of re-enabling sends and receives of Ethereum Classic and will communicate to our customers what to expect regarding support for ETC.”

Kraken trade adopted, informing its clients through an update that it appeared Ethereum Classic was beneath a “51% attack.”

The trade imposed a short lived suspension of all deposits and withdrawals of the asset till the difficulty could possibly be resolved.

However, OKEx, through an announcement made on its web site, knowledgeable customers that it could proceed with regular ETC-based operations even within the wake of the 51% assault.

“Our team have assessed the situation and our advanced risk management system is able to maintain market order. Our ETC trading, depositing, and withdrawal will remain open and continue normal operations.”

The trade additionally knowledgeable clients that it had up to date the confirmations required, as 100 confirmations shall be wanted for deposits and 400 shall be wanted for withdrawals.

ETC’S Fate Hangs within the Balance

Kyle Samani, Managing Partner at hedge fund Multicoin Capital said that double spending of this magnitude solely signifies that the Ethereum Classic blockchain has basically failed at one among its most important duties. According to the enterprise capital supervisor, this assault implies that the token has no future.

“I’m surprised that ETC is not down 50 percent or more. The most probable explanation is that the biggest holders store their assets off-exchange, leaving them unable to transfer them back and sell,” he mentioned through e mail correspondence with Bloomberg.

However, in a weblog put up on Medium, Donald McIntyre, a former worker of the now-disbanded ETC improvement crew, said {that a} change within the mining algorithm may assist defend the community and stop setbacks like this sooner or later.

Larger Problems for the Crypto Space

Broadly, this assault depicts the problem that comes with creating a public community that’s actually dependable and safe, particularly as Bitcoin Gold (BTG), an offshoot of the unique Bitcoin (BTC), suffered a similar assault in May 2018. It additionally exposes the vulnerability that’s inherent in a few of the much less common digital assets- even those that are laborious forks of the extra common digital property.o

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