Silence is gold, even if the cryptocurrency in support of gold would prefer silver speeches very preferably. AurumCoin (AU), a small and mostly unknown cryptocurrency claimed to have been the victim of a recent 51% attack. To complicate matters, they say that the Cryptopia, the exchange in which the cryptocurrency is listed, has lost about 15,7520 UA. This is equivalent to about $ 500,000 and clearly a big problem for such a small and imminent currency. Unfortunately, in a maneuver "it was not me" that reminds Shaggy, the cryptocurrency has appropriated all the faults on Cryptopia.
AurumCoin has announced that they are only an open source distributed currency and therefore are not responsible to anyone. Cypropia, on the other hand, has not yet recognized the loss, yet.
Who are the main parts in this story
AurumCoin (AU) states that it is a cryptocurrency supported by gold, each of its tokens is anchored at the value of 24 K gold and supported by 0.75 grams of gold. In the last 4 years, AU has managed its own blockchain in which the token is miniaturized and has a maximum limit of 300,000 coins. Interestingly, some have been a little bit skeptical about cryptography. They say the extraction seems to have no problems, despite the alleged gold peg. In addition, the AU prices were quite volatile, rising from $ 9.50 to a shadow over $ 35 in just over a week. One would expect that an authentically Oriented Cryptocurrency is a little more stable than that.
On the other hand, there is the cryptopia of Christchurch, New Zealand. Founded by Adam Clark and Rob Dawson, this is a combined exchange of cryptocurrencies, trading platform and marketplace. The exchange seems to facilitate the purchase, sale and trade of almost everything, using cryptocurrency. It is generally considered reliable and is among the top 50 in terms of trading volumes.
About a 51 percent attack
A 51% attack occurs when a hacker is able to overcome the cryptographic network with more than 51% of his hash frequency. This gives the hacker extensive authority and control over the transactions; therefore new transactions can be stopped or reversed or there may be double expenses. Small cryptocurrencies. they are more susceptible to this type of attack
What happened and what is about to happen
AurumCoin has a market capitalization of around $ 10 million, which has made it a plum target for this kind of nefarious behavior. It seems that the hacker sent for the first time 15.752,26 AU to Cryptopia sold for several scrambled. Upon completion, the transactions were roughly reversed
Cryptopia has not granted any kind of attack to their network, even though they have confirmed that no AU transactions have been processed this month. Indeed, the AU transactions have been temporarily suspended due to an "infrastructure upgrade".
AurumCoin was more vocal and issued a statement: "The Aurum coin network (AU) has been compromised (51% attack), a total of 15,775.26 AU is missing from the Cryptopia portfolio (exchange of criptopo.co. nz) The Aurum coin network is not the responsibility of anyone, like the bitcoin network, it is a cryptographic currency distributed open source.What is worse is that the exchange of crypts does not admit it.This is not the way to solve this problem . "
They limited themselves to detailing what they wanted the exchange to do. However, the fact is that AurumCoin did not seem to have the hash rate to prevent a 51% attack which in turn cost Cyptopia losing so much money. When a similar attack happened on Bitcoin Gold recently, the exchange, Bittrex, simply erased the cryptography. It feels a bit hard and borders the victims. It must still be verified as the exchange has yet to admit problems.