The Project Verge (XVG) blockchain suffered a 51% attack, which is said to have affected more than 560,000 blocks containing XVG transactions. Update on what this means for the project and investors‘ wallets.
Verge suffers a 51% attack
It was the operations manager of analysis firm Bitcoin Blueprint, Antoine Le Calvez, who first reported a reorganization of Verge’s blockchain, which is often a sign of a 51% attack. He explains that the CoinMetrics node ended up on a new chain, which has diverged from the last one since July 2020.
CoinMetrics co-founder Lucas Nuzzi also confirmed the event, explaining that its scope is particularly wide:
“The history of transactions in XVG over the last 200 days has just disappeared. This is probably the biggest reorganization that has ever taken place on a top 100 cryptocurrency. “
What happened ?
The first commentators considered that it was most likely a „double spending “ attack , which allows you to rewrite a blockchain in order to appropriate funds . According to the Verge teams, it was indeed a 51% attack that took place. The consequence is that investors saw their XVGs fly out of their portfolios . As a Deribit Insights analyst reminds us, however, it is easy to turn around when this type of event occurs:
“It’s scary, but it’s actually quite easy to counter. The nodes will reject the attacker’s chain and restore the old one. But this is further proof that crummy cryptocurrencies with a GPU are inherently insecure. “
This is the scenario that has in any case confirmed the development team of Verge, which explained the situation this morning . She reveals that the attacker would have been mining on a sidechain for months . He reportedly used daemons to take over 51% of all nodes in the network. This allowed the blockchain to be rebuilt on the sidechain.
The Verge teams have published an update, they invite all users to check the compliance of their transactions. They also explain working on a patch to prevent an attack of this type from happening again.
The course of XVG accuses the blow
Unsurprisingly, the price of XVG immediately plunged after the first reports of this problem. The cryptocurrency lost -22% in the space of 3 hours, before rebounding:
However, we should wait before seeing if the price of Verge’s cryptocurrency will continue to suffer from this 51% attack. This is not the first time that the blockchain has experienced this type of event, so confidence in the project could erode further.