WaltonChain (WTC) Price Rises 11%, Despite Suffering ‘Coordinated Attack’

The price of Waltonchain’s WTC token has recently surged, despite the cryptocurrency project’s yet-to-be-released mainnet suffering a “coordinated attack” that saw a hacker control most of its network’s hashrate.

According to a recently published Medium blog post, the Waltonchain’s mainnet, which is still being tested, has suffered a mysterious attack that saw a hacker control 99.99% of its hashrate, by exploiting a bug in its code that increased their perceived mining power.

On Reddit, a user explained that through the exploit, the hacker managed to have a total hashrate of  102,713,597,453 MH/s, equivalent to a mining farm with 288 million ASIC mining machines in it.

The blog post reads:

Earlier today the Waltonchain Mainnet suffered a coordinated attack. Not only on our Mainnet, but also within the cryptocurrency community where disinformation and malicious rumors were spread.

It further notes that Waltonchain’s team knew about the attack before, and that along with community members worked to thwart it by rewriting code. Once the hacker made its move, Waltonchain’s developers hard forked to fix things.

Notably, the motive behind the attack – especially a ‘coordinated’ one – is unclear, as Waltonchain’s WTC is currently an ERC-20 token on the Ethereum network, as Waltonchain’s mainnet hasn’t been released.

As one Reddit user noted:

The wtc tokens are still on ethereum. The 'mainnet' which has been hacked has no value apart from miner payout (which are essentially IOUs since they can't trade them). Which makes this attack really weird since the attacker can't extract value out of the network.

As a result of the attack, Waltonchain’s unreleased mainnet was upgraded. Despite the attack, the price of the WTC token has notably been rising, and is currently up by around 11.4% in the last 24-hour period, according to CryptoCompare data.

The rise is likely related to Waltonchain announced it’s set to give miners on its blockchain 1 ERC-20 WTC token per every WTC mined on its mainnet.

It's worth noting WTC's mainnet was recently audited by a security firm that claimed everything was alright.

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Bitcoin Dominance Bump Unlikely to Last — Market Analysis

The entire crypto market seems to be going risk-off and turning to a state of correction, after an excellent start to 2020 throughout January and February which saw significant gains. This is reflected in the brief pop in Bitcoin market dominance. But in the longer term, it’s a different story, and we must always bear in mind the intercourse the conflicting trends of different timeframes – and how they can still agree with each other.

Here, rather than focusing on any specific crypto, we’ll look at the market as a whole using some trusted indicators.

We first look at a small-to-medium-timeframe chart of Bitcoin plus Bitcoin’s market dominance arrayed against the “Others” market dominance, Others being a basket of all altcoins below the top 10. This panoply of charts gives us a broad insight into the whole market.

just some speedbumpsBTC chart by TradingView

During January and some of February, we can see clear risk-taking in the form of a rising altcoin market share. Bitcoin’s price was rising even as its dominance was falling: peak altcoin conditions, where so much buying is coming into the system that more entities are buying Bitcoin than selling Bitcoin for altcoins, even when there is a lot of that.

This pattern has reversed in the past few days, with Bitcoin’s price falling even as its dominance rose, with altcoins being sold back into Bitcoin. The market was overheated in the short term, and people are wisely hedging their profits.

But this trend is unlikely to last. Zooming out and looking at a chart of Ethereum/Bitcoin and both dominance charts again (with Ethereum being a general proxy for the altcoin market), we see a different story.

the bigger picture says the opposite thingETH chart by TradingView

There is a lot going on here. First we can note that Ethereum – again, bearing in mind its role as a general proxy for altcoins – has retaken a very important inflection line that it lost during 2019, the dotted line. It is likely, based on this line retaken last week, that Ethereum is starting a long term uptrend against Bitcoin – and that altcoins in general will do the same in the long term.

Moving to the Bitcoin dominance display in the middle panel, we see an agreement of the above thesis. Bitcoin’s dominance has fallen below its own critical level, namely the area near and above 70%, which BTC held for a while during 2019. This level had not been held since 2017, when Bitcoin put in its all-time-high – and it now looks to be trending steadily away from it again.

This trending away will again provide the space for altcoins to grow in market share, and we have already seen the beginning of this trend during 2020. Perhaps what we have seen was only ‘Round One’.

And moving below to the Others dominance, we see that this indicator has, yet again, taken an important level of 6% and is likely trending away from it. This is the same message in reverse: this level was first tickled during the first real altcoin mega-rally, in the beginning of 2017, and stayed above it for years. It was lost for a time in 2019, about the same time Bitcoin retook its level of 70%.

The larger trends are likely moving in the opposite direction than the shorter ones. Bitcoin's price, based on these indicators, is likely to continue rising even as its market share continues to falls. Altcoins, after years of being battered, are likely to continue gaining market share; and in that situation, the pie can only be getting larger overall.

The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice. Always do your own research.

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