Altcoins, Fraud and Scams

Grin is under 51% Attack!

From around 2018 to early 2019, MimbleWimble was hype. It is a privacy technology for cryptocurrencies that attempts to one-up technologies like Zcash or Monero.

In 2019, the technology gained a bit of traction when two cryptocurrencies using MimbleWimble launched Grin and Beam. Grin was more decentralized, with a founder making a Satoshi-like exit, while Beam is more centralized with a firm the supports its development.

The coins have gained quite a large amount of traction, even if they were launched in the hands of a bear market.

As high as it seems, GRIN had a market of $80M. BEAM has a similar fate, rallying to a market capitalization of $60M.

Both of them have a market capitalization of approximately $15M per piece; they still have come under fire from the attackers.

GRIN has just reported a 51% attack.

GRIN’s 51% attack is now crypto-viral

Yesterday, 2Miners began to report that the Grin Network has come under a 51% attack.

Grin Network Is Under the 51% Attack!

Payouts are stopped. Please mine at your own risk only because the new blocks could be rejected.@grincouncil @grin_hub @Hotbit_news @Poloniex @kucoincom @gateio_info @CoinBene

— 2Miners (@pool2miners) November 8, 2020

A professor from Cornell University and CEO of Avalanche, Emin Gün Sirer, has verified that he thinks the network got 51% attacked.

He added that the attack on the network had been a byproduct of fundamental drawbacks in using the Proof of Work consensus mechanism:

“Looks like Grin got 51% attacked. PoW is insecure unless: 1) The coin is the dominant one for its hashing algo, and 2) Mining involves dedicated hardware Combined, these mean that mining will always be in the hands of a small number of specialists, hurting decentralization.”

It is still unclear what effect the attack has had on the exchanges or those that interact with GRIN. The attacker could have made false deposits on the exchanges that support the cryptocurrency, traded the coins for another cryptocurrency, and then issue a withdrawal request.

The 51% attack on the Grin Network came after two equivalent attacks on Ethereum Classic. Dan Tapiero, a macro investor, commented that coin could be 51% attacked should have little monetary value:

“Why isn’t #ethereumclassic worth zero? It has a $800mm mkt cap. Why own something that can be easily attacked and stolen when there are so many alternatives (even within alts space). Digital currency is supposed to be secure. What am I missing here?”

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