A recent post by Monero’ official website stated that there was a bug in the wallet which could be used by attackers to send multiple transactions to the same stealth address, which were a predominant part of Monero’s privacy. They would be used to authorize and request a sender to create random one-time addresses for all the transactions which were done on behalf of the receiver.
According to the post, this could result in attackers intentionally burning the funds of an organization present in Monero’s ecosystem. The funds can be burnt from any wallet without any additional cost except for the network transaction fees. However, the attacker does not have any direct monetary gains but might benefit from the attack indirectly.
Sending multiple transactions to the same stealth address to burn the funds of a user is not something new and there has been recorded evidence of its existence for quite some time. They further stated:
“the consequences of an organization being involved was not thoroughly thought through until a community member described a hypothetical attack on the Monero subreddit”
The Monero community stated that numerous duplicate key images can be generated by sending XMR to an identical stealth address. The network then declines the key image as it is already available on the blockchain and it will be recognized as an effort to double spend.
The official post further stated that attackers modify the code to get access to a particular private transaction key. This allows the stealth address to receive the same multiple transactions sent to the public address. The attacker could then send one thousand transactions of one XMR to any cryptocurrency exchange. Since the exchange wallets are not aware of the particular abnormality they will credit the attacker with 1000 XMR. Thus the cryptocurrency exchanges are left with 999 burnt outputs of 1 XMR.
However, The community confirmed that the bug did not affect Monero’s protocol and the coin supply was not affected. According to a recent post, the Monero [XMR] wallets on major exchanges like Poloniex, Bittrex, Cryptopia, and XMR.to were not functioning. Cryptopia, a major exchange platform also stated that the actions were taken as per the request of the Coin Developer.
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Fall in Bitcoin’s market dominance may be correlated to the fortunes of the altcoin market
The trends set by virtual assets have always highlighted the cryptocurrency market’s inherent volatility and spontaneity. Prices lack symmetry and rarely exhibit consistent growth as different factors come into play to dictate an asset’s valuation.
At press time, the world’s largest crypto, Bitcoin, had stormed past the $11,000 mark and was consolidating to push for a surge over $12,000. The rest of the altcoin market however, apart from one or two minor hikes here and there, has been relatively quiet after collectively surging in the early part of the year.
At the beginning of 2019, a significant number of crypto-assets performed significantly well in a group, wherein most assets demonstrated a prominent hike in their values with little to minor price corrections.
A majority of tokens doubled their valuation until Bitcoin breached the $6,600 resistance. Subsequently, altcoins failed to keep pace as Bitcoin continued to test more resistance limits in the market.
At present time, Bitcoin enjoyed an unprecedented 62 percent dominance in the cryptocurrency market. As its dominance primes itself to climb over the 63 percent mark, many in the community speculate this could be red flags for the altcoin market.
Major cryptocurrency enthusiasts and analysts have stated that altcoins could significantly capitulate if it so happens. However, past events offer a sliver of hope for the altcoin market.
According to CoinMarketCap, the altcoin market has been significantly affected whenever BTC’s dominance has fallen. During the bull run of 2017, Bitcoin enjoyed a dominance of 65 percent and the global market cap hit a value of $402 billion. However, in January 2018, when BTC dominance plummeted, the global market cap peaked at around $710 billion. The dominance was down by half, whereas the global market cap had almost doubled.
A major reason for the same was money funneling into other altcoins after witnessing a shift in momentum from Bitcoin to the rest of the crypto-market. The present market situation may take a similar path once BTC’s dominance falls, opening the door for other virtual assets to take advantage of the scenario.
However, the present rise of BTC is backed by much more certainty than the bull run of 2017. Hence, a repeat of the January 2018 period may be unlikely, and will happen if and only the market sentiment shifts gears drastically towards altcoins.
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