On the 7th of January, it was reported that the 18th largest crypto including Ethereum Classic appeared to have become the latest blockchain network to succumb to 51% attack, wherein a malicious miner accrues a majority of the network hashpower and also uses it to rewrite recent blockchain data.
The price of Ethereum Classic stemming from the 51% attack
The price of Ethereum Classic or ETC is pulling back, and that stems from the ongoing 51% attack reported recently, which resulted in a series of blockchain history rewrites.
The losses from the attack have now breached the million-dollar barrier, according to the updated figures published by the crypto exchange Coinbase. At writing time, ETC was trading at an average price of %5.01 – down more than 7.5% in the past 24 or more hours, according to some data from CoinMarketCap.
ETC fell to an intraday low of $4.93 at 20:00 UTC on the 7th of January, which at the time registered almost 10% daily depreciation.
At that time, Coibase has announced that it has identified several instances where the attacker exploited that majority hashrate to execute double spend attacks, which are mostly directed against crypto exchanges.
The time when ETC started seeing sell-offs
Recently, the engineers of Coinbase published updated data that indicated that the attackers had successfully executed repeated deep reorganizations of the ETC blockchain, most of which contained double spends.
The chart published by Coinbase shows that the price of Ethereum Classic started to see a sell-off after it reached $5.51 at 17 UTC on the 7th of January, which is its highest price since the 26th of December.
Initial reports of the suspected 51% attack – by which an entity actually controls the majority of the processing power of the network and can try to rewrite the history – appeared at almost 5:00 UTC, at a time when the price was trading at $5.30 and remained stable until 09:00 UTC, when the sell-off started to accelerate.
So far, just the crypto exchange Gate.io has come forward in order to confirm that it lost funds, to the ETC hacker. As one statement published on Tuesday says, the attacker fled with 54,000 ETC, which is worth around $200,000 at the current exchange rate.
ETC is not the worst performing crypto of the day
Notably, the exchange also advised ETC to adopt a radical change from Proof-of-Work (PoW) consensus to Proof-of-Stake (PoS) to prevent similar incidents from happening soon.
Noticeably, the price of ETC saw minimal movement over the last 24 or more hours, declining just 3.82% against the US dollar and 4.16% against Bitcoin. This fact was not lost on many observers, a few of them noticing that a variety of cryptocurrencies exploited by 51% attacks have inexplicably managed to retain significant economic value after the attacks have exposed security vulnerabilities.
This means that ETC, which is the 18th largest crypto in the world by market cap, is not the worst performing crypto of the day, and it is noticeably under-performing the other major cryptocurrencies.
During that time, ETC was the only crypto out of the 20 most massive in the world that reported a 24-hour loss above 5%. For reference, Bitcoin reported a minor loss of less than 1% on the 8th of January.