Coinbase Uncovers 51% Attack on Ethereum Classic Protocol

Coinbase Uncovers 51% Attack on Ethereum Classic Protocol

Coinbase published a blog post revealing a deep chain reorganization attack with double spend on ETC totaling to 219,500 of the coins equivalent to approximately $1.1 million

On 5 January 2019, Coinbase temporarily ceased on-chain ETC transactions following the discovery of a 51% attack. The exchange found eight more attacks subsequent to the first discovery with a sum of 88,500 ETC or $460,000 in double spend. In the latest update, 12 more deep chain reorganization attacks was detected carrying a total of 219,500 ETC or $1.1 million in double spend.

Though the initial discoverer of the attack, the exchange emphasized they are not the objective of it. As of yet, there is no information on whom the attack is targetting.

User funds are secure and Coinbase, currently assessing the security of reinstating ETC transactions, will give updates on the status of ETC support.

A Response from Ethereum Classic Team

Ethereum Classic replies to Coinbase through Twitter saying, the exchange neglected to inform the ETC team before running the blog post.

A Laconic on Double Spend

An attack such as the 51% attack or deep chain reorganization is not easy to execute, especially against networks with huge market capitalizations. But the opposite is true for coins with lesser capitalization. It requires the perpetrator to gain the greater share of a network’s hashrate; the longest chain. The attacker will then be able to tamper the ledger, thus, restructuring the blockchain. The attacker is then able to do double spend by reversing previously confirmed transactions.

Small-cap cryptocurrencies like Bitcoin Gold (BTG), Litecoin Cash (LCC), Verge (XVG), Vertcoin (VTC), and ZenCash (ZEN) encountered such an attack to their protocol in 2018. The difference between the ETC incident and those from last year is that ETC is among the top-20 of the largest cryptocurrencies in the market.

Ethereum Classic

ETC
Price
4.91 USD 3.62%
0.00122800 BTC 5.38%
Volume, 24h
138,799,428 USD
32.59%
Marketcap
523,852,090 USD
0.38%
Emission
52%

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Ethereum Classic Price Gains 5% as Market Turns Very Bullish

In the cryptocurrency world, there is always one market which seems to buck the overall trend without any real problems. With Bitcoin and other top markets in the dirt a bit, it is all the more interesting to see the Ethereum Classic price move up all of a sudden. Although the gains are not spectacular, there is always a chance this altcoin will hit $5 in the next few hours and days. Ethereum Classic Price Bucks the Trend When the top markets turn rather bearish, one has to be happy with any market which does not blindly follow this pattern. Although Ethereum Classic is not the most popular project by any means, it is evident the current price momentum will get many people excited a bit. It is also the only market in the market cap top 20 which notes gains of over 4% right now, thus it seems likely a lot of people will try to make good money with it in the process. Over the past 24 hours, the Ethereum Classic price noted a strong 4.75% gain to push the USD value to $4.83. There is also a 5.8% improvement in ETC/BTC, bringing that ratio to 0.0012 Bitcoin. Both of these trends are made possible thanks to over $338.8m in trading volume, which is rather steep for this particular market. As is usually the case when Ethereum Classic’s value begins to rise, there will be some funny memes to enjoy. Stev shares a pretty interesting one, and one that is also factually correct. Ethereum Classic is capable of noting gains whereas other markets are at a near standstill. Sustaining this level of growth will always be complicated, especially with the overarching bearish pressure affecting this industry. #ETC price action right now be like… #ethereumclassic #blockchain #cryptocurrency #crypto #eth #ethereum #dapps pic.twitter.com/dcsrUsJsuw — Stev (@stevanlohja) March 21, 2019 For those who mainly want to determine where the price will head next, it seems the ETC chart looks somewhat promising. Nevermore expects some intriguing price action on Coinbase in the ETC/USD pair, although it seems unlikely any major push should be expected. Reaching $5 is still possible right now, although it will require some significant effort to make that happen. No one seems to be paying any attention to #ETC and I like the looks of it on coinbase https://t.co/3m0cSwxdha — Nevermore (@Nevermorexbt) March 21, 2019 A somewhat similar sentiment is echoed by Crypto Fibonacci, who is looking at the ETC chart like a hawk. It is obvious ETC is not only bucking Bitcoin’s trend, but it does the exact opposite. Not necessarily all that significant for a market which tends to pump at random over the past year and a half, but still interesting for traders. #Etc painting the exact opposite pattern as btc..does it mean anything? pic.twitter.com/Fsa0CYe0GO — Crypto Fibonacci (@PDinHD) March 21, 2019 All things considered, it would appear Ethereum Classic could maintain this “bullish” momentum for the remainder of the day. It is not that difficult to buck the current bearish trend, and the rather high trading volume seems to indicate traders will not relent anytime soon. However, this market tends to flip from bullish to bearish and vice versa on a seemingly random basis. Chasing the pump is never a smart idea. Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency. Image(s): Shutterstock.com The post Ethereum Classic Price Gains 5% as Market Turns Very Bullish appeared first on NullTX.
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