Ethereum Classic victim of 51 percent attack

Ethereum Classic victim of 51 percent attack

Ethereum Classic remains under siege by 51 percent attacks an estimated US$1.1 million in digital coins had been spent twice
Coinbase, one of the world’s largest cryptocurrency exchange wallet said it found “deep reorganizations” of the Ethereum Classic blockchain."Ethereum Classic victim of 51 percent attack"

Ethereum Classic victim of 51 percent attack

Ethereum Classic ETC, an offshoot of the second-largest cryptocurrency, remains under attack by some of the so-called miners whose servers support the underlying network operations, according to the cooperative that funds development of the digital coin.

Coinbase, one of the world’s largest cryptocurrency exchange Wallet, said on Monday that it had found “deep reorganizations” of the Ethereum Classic blockchain. As a result, some US$1.1 million in Cryptocurrency has been spent twice. That can indicate a so-called Etmereum Classic 51 percent attack, in which some computers supporting a network falsify transactions.

“It did happen on everything Coinbase published is accurate,“ Anthony Lusardi, US director of the Ethereum Classic ETC Cooperative, said in a phone interview Tuesday.

Coinbase wallet has halted Ethereum Classic transactions, and other exchanges are likely following suit. Ethereum Classic, which is the 18th largest coin by market value according to data provider, has dropped about 7.3 percent since last week.

“The lasting damage for Ethereum Classic will come from the exchanges that will deem the coin insecure and delist it,” Emin Gun Sirer, co-director of Initiative for Cryptocurrencies and Smart Contracts at Cornell University, said in an email. “This might trigger to selling ETC when the exchanges re-enable trades. Just how much is anyone’s guess - it’s a fascinating experiment overall, and we will see just how much of the market price value is based on fundamentals and technical strength graph, which evidently and incontrovertibly went out the window.”

An incident comes several days after the main development team supporting Ethereum Classic disbanded amid a lack of funding. In a Medium article yesterday, developer Donald McIntyre, who used to work for the shuttered group, called the attack “a significant setback” but said a mining algorithm change could help protect the network in the future.

Ethereum Classic ETC is only the latest victim of 51-per cent attacks. Smaller Cryptocurrency like Bitcoin Gold and ZenCash have already suffered them.

With coins double spent, the Ethereum Classic blockchain has failed at its essential task and the currency has no future, said Kyle Samani, managing partner of cryptocurrency hedge fund Multicoin Capital.

“I’m surprised that Ethereum Classic is not down 50 percent or more,” he said in an email. “The most probable explanation is that the biggest holders store their assets off an exchange,” leaving them unable to transfer them back and sell, he said.

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