Following one of the world’s largest cryptocurrency exchanges, Binance, suffering a hack that cost $40 million in BTCs, the market took a significant hit. The collective market lost $4 billion in a matter of hours, since news of the hack first broke out.
Unsurprisingly, the cryptocurrency that suffered the most was the exchange’s native token, Binance Coin [BNB]. Since BNB’s performance is directly tethered to the operations of its exchange, Binance Coin was the biggest loser in the coin market. Previously, the coin had broken its all-time-high on the back of the Binance DEX launch.
After reaching $24 last week, the coin saw a consistent decline. Following the hack, the coin dropped by 8.56 percent to $19.97, in two hours. With rumors of a possible re-org, which have since been denied, the coin’s price saw waves of movement, before settling on its press time price of $20.89, a 6.62 percent dip against the Dollar over 24 hours.
The market cap of the coin saw a whopping $200 million drop, plummeting to $2.81 billion. Since then however, the native token managed to regain a little over $130 million and was valued at $2.94 billion, at press time.
Binance took the top-two spots in terms of global BNB trade volume, with the BNB/USDT and BNB/BTC trading pairs accounting for 23.36 percent and 15.94 percent of the total volume.
Given the dominance of the exchange, a slew of coins was brought down by the Binance hack. Cardano [ADA] recorded saw a 5.17 percent decline in price, dropping to $0.062 in a matter of hours. With the immediate bears backing off, the cryptocurrency however, managed to climb up to $0.0643. The ordeal saw Cardano lose over $70 million in market cap, with the same standing at $1.67 billion, at press time.
Ethereum [ETH] and Stellar Lumens [XLM] also showed notable drops. The top altcoin declined by 3.78 percent over 24 hours, following a massive 10 percent price pump owing to a rumor about the CFTC “being comfortable” with Ethereum futures contract. XLM also fell by 3.74 percent.
The only shining light in the top-15 was Justin Sun’s Tron [TRX], which saw a price incline of 2.54 percent on the back of Sun’s offer to help out the hacked exchange in this dark time.
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Bitcoin and Ethereum Classic find themselves on opposite ends of the 51% attack spectrum
Every revolutionary product comes with its own fallacy. However, to its internal metrics, in order for that product to remain adherent to the principle it hopes to expound, the cryptocurrency world is no less. Bitcoin [BTC] and other Proof-of-Work [PoW] cryptos have an in-built fallacy as well, the dreaded “51 percent attack.”
A recent study by cryptocurrency analytics firm LongHash, detailed the cryptocurrencies that are the closest to being subjected to the aforementioned attack.
The report looked at ten of the most significant PoW coins including, Bitcoin, Ethereum [ETH], Bitcoin Cash [BCH], Litecoin [LTC], Dash [DASH], Bitcoin SV [BSV], Zcash [ZEC], Monero [XMR], Ethereum Classic [ETC], and Bitcoin Gold [BTG].
Prior to detailing the study, Longhash listed out the two key points required to execute a 51 percent attack. First, a single mining pool/entity/individual would have to control over 50 percent of a network’s mining power. Second, the energy expenses related to the same, based on renting or sheer purchase of mining power.
Dividing the parameters of performance into two key parts, LongHash initially looked at the one-hour attack cost based on data from OnChainFX as on June 19, and consequently, the percentage of mining power available for rent on NiceHash. The matrix for an unsuccessful attack would be a high one-hour attack cost with low power availability, deeming the network “quite safe.”
Bitcoin took the top spot, with the report stating that there exists “very little power available to rent,” coupled with a “very high hourly attack cost.”
Traversing down the estimate cost Y-axis, several coins are scattered including, LTC, ETH, BCH, ZEC, BSV, DASH, and XMR, citing low power available via NiceHash. However, the estimated cost to rent the mining power is fairly low.
The report added,
“Most tokens, however, are clustered in the bottom-right corner of our chart, with low mining power availability and hourly attack costs north of $10,000, which makes them appear relatively safe.”
Moving horizontally further down the total mining power X-axis, BTG is the sole cryptocurrency exhibiting around 35 percent mining power availability on Nice Hash, with the lowest estimated cost to rent 51 percent of mining power for sixty minutes.
The biggest worry by far, was Ethereum Classic. The ETH hardfork had more than 80 percent of its mining power available on NiceHash, while the hourly attack was estimated to cost less than $10,000.
Earlier this year, the ETC network was the subject of a 51 percent attack, with several exchanges pausing ETC-related transactions in the process. The attack led to several cases of network double-spends and re-organisations totaling around $1.1 million or 219,500 ETC.
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