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The Dreaded 51% Attack Is Myth No More. Vertcoin Under Siege

  • Thomas Hughes
    ⭐ Features

    Vertcoin has been hit by a 51% attack during which a group of cybercriminals got hold of more than 50% of the network’s hash rate


The Dreaded 51% Attack Is Myth No More. Vertcoin Under Siege
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Vertcoin (VTC) was created in 2014 and was meant as “a direct hedge against long-term mining consensus centralization on the Bitcoin mining network”. Just recently, it has been hit by a 51% attack during which a group of cybercriminals got hold of more than 50% of the network’s hash rate.

This practically means that said group now owns Vertcoin’s Blockchain, and they can create additional blocks from any previous block, thus creating two versions of the same Blockchain (reorganization) and allowing double spending.

According to Mark Nesbitt, a security expert, there have been 22 cases of Vertcoin Blockchain reorganization so far, 15 of which resulted in double spending, which is estimated at over $100,000.


Chart Analysis – VTC/USD

Chart Analysis – VTC/USDHaving dropped more than 4% against the US Dollar during the last 7 days, Vertcoin is likely to sink even lower considering the recent 51% attack, which will probably generate panic against traders.

Currently, the pair is trading at 0.29, inside bearish Bollinger Bands (angled down) and capped by a downtrend line. A solid break outside of the channel formed by 0.36 and 0.26 will trigger an extended move in the direction of the break, but looking at the latest candles, we can see there is an almost complete lack of bullish pressure, so we consider the most likely target to be 0.26.

The candles show long wicks in their upper part, meaning that bulls are trying to push higher but lack the necessary strength and by the end of the candle period, the bears take over. If the trend line on the chart is intact, our bias is bearish.

Support zone: 0.26

Resistance zone: bearish trend line (as diagonal resistance) and 0.36 (as horizontal resistance)

Most likely scenario: drop into 0.26

Alternate scenario: break above the trend line without momentum

Cover image via u.today
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Question of the Day: Can Stablecoins Accelerate Cryptocurrency Adoption?

  • Yuri Molchan
    ⭐ Features

    Stablecoins show hardly any volatility compared to Bitcoin and altcoins, many are hoping that they will be able to bridge new crypto economy and regular fiat money


Question of the Day: Can Stablecoins Accelerate Cryptocurrency Adoption?
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Contents

Bitcoin, the father cryptocurrency, emerged in hope that it will remove all intermediaries in electronic commerce that cut off their share of payments. BTC was perceived as a P2P way to replace fiat cash in an electronic format, which would enable one party to pay another without any financial institution or payment platform which would demand its share of a transaction as a reward for its services.

What is wrong with Bitcoin

For quite a while Bitcoin was performing the way the crypto community expected. But the situation changed later – BTC rate became weaker, thus bringing down its financial and economic reliability, when it gets to be used as a regular means of payment.


You cannot have a currency that would cost like a British castle today, a gram of gold – tomorrow and a pack of French fries the day after.

At that point practical fintech minds came up with an idea of creating something which would become a breakthrough in the universe of crypto – a so-called stablecoin.

Will stablecoins solve the volatility problem?

Technically, stablecoins are protected from the volatility roller-coaster that Bitcoin and other cryptos love to ride. They are programmed to keep their prices stable and investors now are largely attracted to this new type of digital assets.

Stablecoin does not show any volatility in its monetary value, since it has a fixed connection to an asset it is pegged to. The major goal of using stablecoins is taking the best from decentralized crypto coins and combining it with a constant value. Thanks to it, stablecoins can be used as a reliable means of trade.

Asset-pegged stablecoins

Asset-backed ones get their value from an asset as can be understood from the name. An asset provides the necessary value to a coin, as well as the necessary legitimacy.

A great example of an asset-pegged stablecoin is Tether (USDT). In spite of a series of scandals at the end of last year, it remains the most popular stablecoin in the crypto market.

Recently, it has partnered with the Tron Foundation to launch a Tron-based stablecoin.

Other examples are TrueUSD (TUSD), USD Coin (USDC), the Gemini Dollar (GUSD), and the Paxos Standard (PAX). They are all pegged to the USD.

Crypto-backed stablecoins

Some digital coins work in a similar way to fiat-backed ones, however, they are pegged to collateral crypto. That means that crypto assets that ensure the value of such stablecoins are stored in a wallet similar to escrow.

A good example of a crypto-pegged token is Maker, which is ranked 16 on CMC.

Algorithmic stablecoins

Even though, stablecoin can be interesting at first thought but the way they are built goes against the principle of decentralization that crypto coins have as a foundation. Thus, many crypto fans and evangelists are positive that stablecoins must be linked towards not a centralized asset but a computer algorithm which takes value from a balance between supply and demand.

Basis is now considered the most promising algorithmic stablecoin of all.

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Can stablecoin ensure smooth future for the crypto industry?

The primary goal of all crypto assets was and remains to come up with virtual asset that would be liquid enough and not vulnerable to market volatility. From this point of view, stablecoins are a dream of all crypto fans and evangelists of a decentralized economy.

Apart from the potential to conduct crypto transactions smoothly, experts believe it can bridge the two worlds – fiat and crypto, bringing them a mutually beneficial coexistence. However, that may take time.

Cover image via u.today
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