Verge (XVG): Staying Alive Or Walking Dead?
Verge (XVG) came into the limelight in April when it penned a partnership with the top adult entertainment site Pornhub. However, what appeared as the beginning of an adoption rally has been overshadowed by two attacks on the cryptocurrency.
Verge is one of the most recognizable privacy-oriented coins and was seen to have hit a jackpot with Pornhub. But the 51% attacks that happened in April and May saw it lose XVG worth millions. It dented the image of the coin and almost certainly has the crypto community wondering if it’ll survive or sink.
The creators of Verge developed the wraith protocol and integrated it with TOR to make transactions anonymous and eliminate any possibility of detection. The founder, Justin Sunerok, helped create a coin that gave users the option to stay private or choose to utilize the public chain.
Until the attacks surfaced, XVG was seen as a potential crypto project for mass adoption. It even attracted the likes of John McAfee who said it had a bright future.
The partnership with Pornhub opened the door for several others to adopt XVG. For a while, the coin was the hottest in the market, and it seemed only a matter of time before its value exploded. That, however, hasn’t happened and from being a top 20 coin, Verge has slid down the ranks and currently is ranked 33rd.
Verge’s problem stems from its susceptibility to attacks. The aforementioned attacks only serve to highlight a bigger problem that Sunerok and team have to contend with: the possibility of more attacks.
One of the reasons Verge was attacked again relates to its lengthy transaction validation time span. When the attacks were noted, the team allowed up to 2 hours window for transactions to be verified. The result was the attacker(s) was able to “spoof” timestamps and eluded detection by some of the nodes.
The other detail relates to its mining algorithm. The “Dark Gravity Wave” algorithm used to automatically adjusts the rate at which miners generate blocks. It takes two hours to adjust that difficulty whereas Bitcoin, for instance, takes two weeks.
Attackers can, therefore, nine fake blocks and exploit the difficult adjustment to stage repeated attacks.
Even though the team at Verge has managed to fix these problems, doubt remains about the potential to fall victim to more attacks. The incentive for the attackers seemingly is embedded within the system.
The problem is that XVG’s protocol is developed privately, unlike open-source platforms that could have independent experts help verify or spot bugs. To that end, the Verge team has a lot to do to make it secure.
The future of Verge (XVG)
So far, no XVG has been stolen from Verge users and that could be vital for the team. What is needed is to prevent such attacks from happening again, especially so close to the recent one.
Many in the crypto community believe that the platform is still vulnerable and that more attacks could happen.
And the devs at Verge have been criticized for not being forthcoming about what is going on. Nevertheless, the community, a part of it called “Verge Army”, is firmly behind the team. It insists the attacks have an element of FUD about them.
One of the currency’s supporters Crypto Rekt said that Verge will emerge from these challenges bigger and stronger. He contended that:
“Every challenge or problem that is thrown our direction is an opportunity for us to grow. These ‘issues’, while a hindrance, help us to learn and build a bigger and better product. #Verge is here to stay – regardless of what happens.”
Similar sentiments are repeated on most social platforms like Reddit and telegram. So, one aspect of Verge’s future is the community.
Another aspect that will play a role in the survival or sinking of the coin is its partners. So far, none of the partners have expressed serious concern in the wake of the attacks. Even Pornhub has sought to clarify that it has had any issues so far.
If such sentiments hold, Verge can then redeem its standing by fixing vulnerabilities and seeking more adoption. If sentiment goes south and both the community and partners lose faith, the privacy coin could be on the way to ultimate ruin.
XVG price and market
XVG traded at $0.078 to the USD on May 8th. At that time, $64 million worth of the coins were traded and it had a market cap of $1.13 billion. However, over the last 30 days, the coin has lost about 50% of its price value.
Verge currently trades at $0.039 against the USD. It has declined by -0.56% in the last 24 hours while its 7-day price gain is +1.53%. A total of $8.8 million worth of XVG has been traded over 24 hours, taking its market cap to $587 million.
If the crypto stems the decline and rises to prices above $0.05, it could well recover and gain traction. Anything short could be a signal for real danger.