07 Mar 2019 #Verge
Verge (XVG) is on the rise again, after a new bull run took hold of the crypto market. While it is unknown how long will the bull run last or whether the bears will return at all in any foreseeable future, investors are still using this opportunity to invest in their favorite coins.
However, when it comes to Verge, the coin has not seen a lot of usage lately, and its daily trading volume is only at $2.4 million, while its market cap sits at $96.9 million. Meanwhile, the coin's price managed to grow slightly, going from a support at $0.0060 to $0.00638452 at the time of writing.
However, this growth, no matter how small, is easy to explain, considering that the entire crypto market is currently trading in the green. What is not so easy to understand is why did XVG grow by as much as 11% on March 3rd, only to come crashing back down on March 4th.
XVG has been rather stable throughout February, even if low priced. The only exception from this was the mid-February bull run, which — once again — had the entire crypto market grow. The bull run started on February 18th and ended on February 24th. Before and after the rally, XVG price was at around $0.006000, which is coincidentally the coin's largest support level.
However, a week after the mid-February rally has ended, XVG surged by 11%, allowing its price to break through several resistances in less than an hour. The coin broke through resistance levels at $0.006300, $0.006600, as well as $0.006900, reaching its highest point in the previous month at $0.007064.
The growth remains unexplained as of yet, as there is no real reason for it. In fact, Verge has not seen any kind of price spikes — apart from those that include the entire market — for a long while, due to a series incident regarding its mining code, that occurred in 2018.
One potential reason why Verge surged is the accidental tweet posted by its lead developer on March 1st. The tweet, which was allegedly supposed to be posted on March 4th, appeared early and shared a new sign-up process. The developer later deleted the tweet, explained his error, and congratulated those who managed to use the information before the tweet was deleted.
Verge was considered to be one of the top privacy coins for quite some time, and it even managed to enter a partnership with MindGeek, which owns Pornhub. However, that was before the coin turned out to hold a major vulnerability in its mining code. The flaw allowed it to be hacked several times by bad actors who ended up performing up to three time-warp attacks, as well as one 51% attack.
As a result, Verge's reputation was destroyed, and barely anyone touched the coin since. The situation became so bad that the project's developers announced that they are considering the abandonment of PoW and a transfer to PoS.
For now, this has not yet happened, although if it does, it will likely have a large impact on Verge. Its mining code will be protected from further misuse and attacks, although it could be argued that PoS will bring more centralization to the project. However, there are no easy solutions, and shifring over to PoS might be Verge's only remaining choice.
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