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Crypto Investors Have Ignored Three Straight 51% Attacks on ETC

Three 51% attacks on the Ethereum Classic network have not yet made a significant impact on the price of its cryptocurrency.

Republished by Plato

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Despite three “51% attacks” in a month, Ethereum Classic’s price has demonstrated strong resilience. Though down a bit for the past month, its persistence may indicate that security is not a top priority for investors rushing to join a bull run in the crypto market.

However, some warn that unless it improves its blockchain and makes it safer, additional attacks on Ethereum Classic could trigger a market sell-off and lead to a collapse of its digital asset.

For a blockchain network’s security, a “51% attack” is pretty much as bad as it gets. That’s when a single entity gains control of a majority of the network’s computing power, allowing it to siphon off extra units of the currency in what’s known as a double-spend. 

So it would stand to reason that three successful 51% attacks in a month against the Ethereum Classic blockchain might dent investors’ confidence. But prices for the project’s native ETC token haven’t really taken a hit – a sign traders could be less concerned about security vulnerabilities than a quick profit in fast-moving cryptocurrency markets.

At press time, ethereum classic is trading at $5.06, down about 27% in the past 30 days at the same time bitcoin is off by 15%. 

Three 51% attacks in a month

For the Ethereum Classic blockchain, 51% attacks have been a threat for a long time. Unlike Ethereum, from which it was hard forked, the Ethereum Classic network is committed to the Proof-of-Work (PoW) consensus algorithm, which is also used by BItcoin. But for large networks like Bitcoin, a 51% attack is prohibitively expensive to do given the enormous amount of computational power required by PoW to successfully do it. Ethereum Classic’s hashrate is much smaller, making it far more vulnerable to 51% attacks.

By press time, the hashrate of Ethereum Classic stood at 1.668 terahash per second, while Bitcoin’s at 117.95 exashes per second, according to BitInfoCharts.

Ethereum Classic is the product of a hard fork after the Ethereum network split in different ways following an infamous hack in 2016. The PoW-based blockchain has been chasing after Ethereum, which now represents the No.2 cryptocurrency by market capitalization.

Ethereum is planning on changing its algorithm sometime next year. In a tweet thread Sept. 2, Ethereum founder Vitalik Buterin argued Ethereum’s planned Proof-of-Stake (PoS) algorithm gives it a “key fundamental” advantage over PoW.

screen-shot-2020-09-03-at-12-55-45

“In PoW, on the other hand, a successful attacker can just attack over and over again, with no possible way to delete their hardware without deleting everyone else’s hardware.”

During the month of August, the Ethereum Classic network suffered not one but three 51% attacks: the first one took place on Aug. 1,the second on Aug. 6 and a third on Aug. 29.

NiceHash, a hashpower broker, acknowledged its platform may have facilitated the recent 51% attacks, in a blog post on Sept. 1, but it also concluded that such attacks cannot be prevented or mitigated in a “truly decentralized proof-of-work solution.”

“The only thing one can do is make the price of an attack higher than the attacker reward,” the post added.

The Ethereum Classic network also suffered a 51% attack in early 2019, which led crypto exchange Coinbase to halt all ETC transactions, withdrawals and deposits at the time.

James Wo, founder of ETC Labs, the leading organization supporting the Ethereum Classic network, told CoinDesk via a spokesperson that his team has been trying to enhance the network’s security in the past year, including expanding the network’s core development team, and partnering with companies such as Chainlink, Swarm and Bloq.

The company announced two new hires on Sept. 3 to ETC’s core development team.

“These developments and partnerships are working to quickly propel the advancement of ETC and ensure a bright future for the network,” Wo said, who added that ETC’s price has held “strong” even with the recent 51% attacks.

Indeed, the attacks have not had any significant impact on its prices, which prompted a question: why would anyone put money in a token when its security is not guaranteed?

An unattractive gift

A large percentage of ETC holders received their tokens involuntarily after the Ethereum chain split and, as a result, the price of ETC has remained stable over the past few years simply because many ETC holders have ignored taking any actions.

etc-addressses-and-balances
Ethereum Classic Addresses Balance Analysis. Just 610 addresses (0.03% of total) control 86% of all ethereum classic. Reference rate: 1 ETC = $5.10
Source: IntoTheBlock

“Many people are just sort of sitting on it and maybe not necessarily thinking about trading [ETC] or not necessarily actively monitoring their transition,” Meltem Demirors, the chief strategy officer at CoinShares, said in a phone interview with CoinDesk. “Because a lot of people who hold assets from a fork don’t really have any incentive to sell them unless the value goes up dramatically.”

Citing the fact that a large number of Ethereum Classic wallets have been inactive, Demirors said some ETC holders may not see the value of selling or even claiming their ETC.

screen-shot-2020-09-04-at-11-38-02-am
According to data from Coinmetrics, active addresses for ETC are at all time low, 1% of the level they were just six months ago.
Source: CoinMetrics

“I don’t know how motivated they are to actually try to sell or try to move their assets to a wallet or on an exchange,” she said. “A lot of people just don’t think it’s worth the effort and energy.”

Similar to DeFi

Ethereum Classic’s price resilience during these attacks tells the story that the majority of crypto investors right now are more focused on “short-term” price momentum trades than “long-term” chain security and fundamentals, according to John Todaro, director of institutional research at the cryptocurrency analysis firm TradeBlock.

“Price momentum in the space has accelerated recently and security concerns are being pushed aside to an extent,” he told CoinDesk via email. “While Ethereum Classic has legitimate long-term concerns given the recent 51% reorg attacks, we have not seen heightened capital outflows from ETC.”

That is in line with the red hot decentralized finance (DeFi) world where capital continues to be allocated despite warnings of high risks with certain yield farming smart contracts. 

“You see people putting billions of dollars of their digital assets into unaudited smart contracts, right now I’m not sure people are really so concerned about security,” Demirors said.

And as long as the market remains in bull mode, it is likely that traders will compromise their security concerns for higher returns – until that security problem becomes big enough to trigger a collapse of the entire system.

In the DeFi world, that problem could be a few smart contract bugs. In Ethereum Classic, it could be a large-scale dump of the token as a result of any additional 51% attacks, Todaro warned.

That is not entirely impossible: After the first two attacks in August, crypto exchanges contemplated or else took drastic measures which would make ETC less accessible and attractive to investors. OKEx said that it will consider delisting the asset, and Coinbase extended deposit and withdrawal confirmation times for ETC to around two weeks.

“I think the big mover will be exchanges delisting Ethereum Classic and there are no longer any venues where you can trade it easily,” Demirors said. “I think then you may see people say ‘ok, maybe I should take my Ethereum Classic and liquidate it before it becomes impossible to do so.’”

Grayscale’s role

While some have attributed crypto financial giant Grayscale’s position on ETC to its relatively stable pricing, the company refused to admit its influence on ETC’s trading.

“It would be very difficult for us to comment or point to our operating a vehicle around a particular protocol as being influential to the prices,” Michael Sonneshein, managing director of Grayscale, said in a phone interview with CoinDesk, pointing out his company also has large positions in bitcoin and ether. Grayscale, like CoinDesk, is a unit of Digital Currency Group.

But according to Demirors, there are only a “small” number of financial investment firms – Grayscale included – involved in this digital asset, making it natural that Grayscale is in the spotlight when it comes to Ethereum Classic.

“[Grayscale] holds a sizable percentage of the circulating supply in Ethereum Classic, which is locked up in the trust that will never be liquidated,” she said. “So I think some of those natural factors, which can drain the supply of Ethereum Classic on the market, have a dampening impact on the price.”

As of July 31, 2020, Grayscale’s Ethereum Classic trust had $86.4 million of assets under management. That was equal to about 10% of Ethereum Classic’s market cap of  $861.7 million on that date. As of press time, total market cap was down to $619.8 million.

The recent 51% attacks on the Ethereum Classic network also have not led to any additional questions or worries from Grayscale’s clients on this crypto asset, according to Grayscale’s Sonneshein. Grayscale started its ETC Trust in April 2017.

Disclosure

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Source: https://www.coindesk.com/crypto-51-attacks-etc

Blockchain

Spanish Banking Giant BBVA to Launch Bitcoin Trading and Custodial Services in Switzerland

Republished by Plato

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After conducting tests for several months, the Swiss branch of the large Spanish bank – Banco Bilbao Vizcaya Argentaria (BBCA) – has announced plans to release two services related to the cryptocurrency industry.

  • According to the official statement, private banking customers based only in Switzerland will have the option to trade bitcoin and other digital assets starting from Monday – June 21st.
  • BBVA’s second service will enable its clients to store their digital assets on a regulated platform, and both initiatives will launch simultaneously.
  • Nevertheless, the entity has no plans to offer advice or actively manage any funds related to cryptocurrency investments.
  • Alfonso Gomez, CEO of BBVA Switzerland, explained that these services come after an extended trial period and enhanced customer demand.
  • “This gradual roll-out has allowed BBVA Switzerland to test the service’s operations, strengthen security, and, above all, detect that there is a significant desire among investors for crypto-assets or digital assets as a way of diversifying their portfolios, despite their volatility and high risk.” – he added.

  • The services and a bitcoin management system will also be available in the bank’s mobile application. Users will be able to use to review their investments and track their performance.
  • The bank will provide a personalized digital wallet, which will enable customers to convert BTC and other digital assets to euros or other fiat currencies, and vice versa. The process will be automatic, “without delays and without the illiquidity that affects other digital wallets or independent brokers.”
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Source: https://cryptopotato.com/spanish-banking-giant-bbva-to-launch-bitcoin-trading-and-custodial-services-in-switzerland/

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Secret (SCRT) and Injective Protocol (INJ) Technical Analysis: What to Expect?

Secret (SCRT) and Injective Protocol (INJ) Technical Analysis

Rate this post Injective Protocol and Secret prices are holding up above key support levels. Still, INJ/USDT may crash towards $5 as SCRT/USDT buildup towards $2.5. Secret (SCRT) SCRT is the native currency of the privacy-centric focus enabling private and secure computation. Past Performance SCRT/USDT prices remain under the weight of sellers. However, the whipsaw of June 17 with markedly high trading volumes may provide a cushion for hopeful bulls. SCRT is relatively strong at press time, adding seven percent against the USD. Trading volumes are up 36X on the last trading day, buoying buyers. Day-Ahead and what to Expect Reading from the daily chart, SCRT/USDT is deep in bear territory. However, there are signs of strength as June 17 gains may lead the way. Technically, every low may be a loading opportunity for buyers expecting a surge towards $2.5 in line with gains of late May 2021. SCRT/USDT Technical Analysis SCRT bulls are back in contention, which is net bullish. Thus far, SCRT/USDT prices are in range, flattening out following losses of May 21. However, as long as SCRT prices are firm above $1 and May 2021 lows, every low may be a loading opportunity for bulls targeting $2.3 in the medium term. Losses below $1 invalidate the uptrend. Injective Protocol (INJ) INJ primes the protocol. Its creators look forward to truly decentralized solutions explicitly allowing users to trade various assets, including CFDs and derivatives. Past Performance of INJ INJ prices are mainly in range inside a tapering wedge with clear resistance and support lines. On the downside, INJ found support at $8, while the middle BB is a notable resistance line, as the price action of the last month shows. At spot rates, INJ is stable, losing versus the USD but posting minor losses against BTC and ETH. Day-Ahead and what to Expect Technical candlestick arrangements favor bears in the short term. Sellers are pressing lower, unwinding gains in a bear trend continuation pattern, as June 17 bar reveals. Nonetheless, a close above the middle BB may rejuvenate bulls, injecting them with momentum for the next phase higher. INJ/USDT Technical Analysis Technically, every high below the middle BB is a liquidation opportunity for opportunistic bears. In that case, $8 is the next target. Further losses in sync with May losses below the minor support trend line may force INJ/USDT towards $5 or $3 in the medium term. An unexpected surge above $9 ignites demand building up for $11.

The post Secret (SCRT) and Injective Protocol (INJ) Technical Analysis: What to Expect? appeared first on Cryptoknowmics-Crypto News and Media Platform.

Republished by Plato

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Injective Protocol and Secret prices are holding up above key support levels. Still, INJ/USDT may crash towards $5 as SCRT/USDT buildup towards $2.5.

Secret (SCRT)

SCRT is the native currency of the privacy-centric focus enabling private and secure computation.

Past Performance

SCRT/USDT prices remain under the weight of sellers. However, the whipsaw of June 17 with markedly high trading volumes may provide a cushion for hopeful bulls.

SCRT is relatively strong at press time, adding seven percent against the USD.

Trading volumes are up 36X on the last trading day, buoying buyers.

Day-Ahead and what to Expect

Reading from the daily chart, SCRT/USDT is deep in bear territory.

READ  SushiSwap (SUSHI) and NEAR Protocol (NEAR) Technical Analysis: What to Expect?

However, there are signs of strength as June 17 gains may lead the way.

Technically, every low may be a loading opportunity for buyers expecting a surge towards $2.5 in line with gains of late May 2021.

SCRT/USDT Technical Analysis

Secret Price Daily Chart for June 18

SCRT bulls are back in contention, which is net bullish.

Thus far, SCRT/USDT prices are in range, flattening out following losses of May 21.

However, as long as SCRT prices are firm above $1 and May 2021 lows, every low may be a loading opportunity for bulls targeting $2.3 in the medium term. Losses below $1 invalidate the uptrend.

Injective Protocol (INJ)

INJ primes the protocol. Its creators look forward to truly decentralized solutions explicitly allowing users to trade various assets, including CFDs and derivatives.

Past Performance of INJ

INJ prices are mainly in range inside a tapering wedge with clear resistance and support lines.

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On the downside, INJ found support at $8, while the middle BB is a notable resistance line, as the price action of the last month shows.

At spot rates, INJ is stable, losing versus the USD but posting minor losses against BTC and ETH.

Day-Ahead and what to Expect

Technical candlestick arrangements favor bears in the short term.

Sellers are pressing lower, unwinding gains in a bear trend continuation pattern, as June 17 bar reveals.

Nonetheless, a close above the middle BB may rejuvenate bulls, injecting them with momentum for the next phase higher.

INJ/USDT Technical Analysis

INJ Price Daily Chart for June 18

Technically, every high below the middle BB is a liquidation opportunity for opportunistic bears. In that case, $8 is the next target.

Further losses in sync with May losses below the minor support trend line may force INJ/USDT towards $5 or $3 in the medium term.

READ  THETA and Serum (SRM) Technical Analysis: What’s Next?

An unexpected surge above $9 ignites demand building up for $11.

#DeFi #INJ #INJ/USDT #Injective Protocol #SCRT/USDT #Secret Network

Source: https://www.cryptoknowmics.com/news/secret-scrt-and-injective-protocol-inj-technical-analysis-what-to-expect/

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Bitcoin isn’t as Anonymous as People Think it is: Cornell Economist

Bitcoin Anonymous Cornell Economist

Rate this post Eswar Prasad, an economist at Cornell University that says that Bitcoin isn’t as anonymous as people think it is. Other issues pointed out by him include Bitcoin mining being extremely bad for the environment, and that it doesn’t work well as a currency. Cornell Economist Points Out more Flaws of Bitcoin Besides Not Being Anonymous Leading cryptocurrency Bitcoin isn’t as anonymous as people think it is, according to a professor at Cornell University, Eswar Prasad, and formerly head of the International Monetary Fund’s China division. In an interview with CNBC on June 17, Prasad has highlighted the flaws of the flagship cryptocurrency. Firstly, he highlights that Bitcoin mining is an energy-intensive process and that it harms the environment and that it’s “certainly not good for the environment”. On the counterpart, he does highlight that Ethereum requires less energy than the flagship digital asset, saying: “That is going to be much less energy-intensive, and it could deliver a lot of the benefits that bitcoin was supposed to deliver. It could also make transactions much cheaper and quicker.” Secondly, he points out that BTC isn’t as anonymous as people think it is: “The main idea of bitcoin was to provide pseudonymity. But it turns out that if you use bitcoin a lot, and especially if you use Bitcoin to get any real goods and services, then it becomes possible eventually to link your address or your physical identity to your digital identity.” He reminds the U.S. government’s recent success in tracking and retrieving part of the Bitcoin ransom from the Colonial Pipeline ransomware attack has increased doubts about the security and non traceability of Bitcoin transactions. Bitcoin is a “Slow and Cumbersome” Medium of Exchange Lastly, he says that BTC doesn’t work well as a currency as it’s “slow and cumbersome” to use it to pay for goods and services and that the market is very volatile, adding: “So you could take a bitcoin to a store and one day, get a cup of coffee and another day, with the same bitcoin, be able to treat yourself to a lavish meal. So that doesn’t work well for the medium of exchange” According to him, BTC has become a speculative asset for people who hope it will appreciate in value, rather than because they want to use it as a payment mode.

The post Bitcoin isn’t as Anonymous as People Think it is: Cornell Economist appeared first on Cryptoknowmics-Crypto News and Media Platform.

Republished by Plato

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Eswar Prasad, an economist at Cornell University that says that Bitcoin isn’t as anonymous as people think it is. Other issues pointed out by him include Bitcoin mining being extremely bad for the environment, and that it doesn’t work well as a currency.

Cornell Economist Points Out more Flaws of Bitcoin Besides Not Being Anonymous

Leading cryptocurrency Bitcoin isn’t as anonymous as people think it is, according to a professor at Cornell University, Eswar Prasad, and formerly head of the International Monetary Fund’s China division.

In an interview with CNBC on June 17, Prasad has highlighted the flaws of the flagship cryptocurrency.

READ  Retail Investors on Reddit are Shifting from Equities to Cryptocurrencies

Firstly, he highlights that Bitcoin mining is an energy-intensive process and that it harms the environment and that it’s “certainly not good for the environment”. On the counterpart, he does highlight that Ethereum requires less energy than the flagship digital asset, saying:

“That is going to be much less energy-intensive, and it could deliver a lot of the benefits that bitcoin was supposed to deliver. It could also make transactions much cheaper and quicker.”

Secondly, he points out that BTC isn’t as anonymous as people think it is:

“The main idea of bitcoin was to provide pseudonymity. But it turns out that if you use bitcoin a lot, and especially if you use Bitcoin to get any real goods and services, then it becomes possible eventually to link your address or your physical identity to your digital identity.”

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He reminds the U.S. government’s recent success in tracking and retrieving part of the Bitcoin ransom from the Colonial Pipeline ransomware attack has increased doubts about the security and non traceability of Bitcoin transactions.

Bitcoin is a “Slow and Cumbersome” Medium of Exchange

Lastly, he says that BTC doesn’t work well as a currency as it’s “slow and cumbersome” to use it to pay for goods and services and that the market is very volatile, adding:

“So you could take a bitcoin to a store and one day, get a cup of coffee and another day, with the same bitcoin, be able to treat yourself to a lavish meal. So that doesn’t work well for the medium of exchange”

According to him, BTC has become a speculative asset for people who hope it will appreciate in value, rather than because they want to use it as a payment mode.

READ  Grayscale Bitcoin Trust Sees Rebound as Institutional Demand Increase

#Bitcoin #Cornell University #Eswar Prasad

Source: https://www.cryptoknowmics.com/news/bitcoin-isnt-as-anonymous-as-people-think-it-is-cornell-economist/

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