Bitcoin Gold’s market cap has plummeted nearly 25% as the selloff following the 51% hack continues a selloff. The attack which falsified coins through the hackers taking over a majority of the network stole over $18 million worth of the crypto.
It has been a major recent trend for smaller cryptos to be plagued with attacks. Many are fended off but some slip through the cracks such as this. Smaller cryptos with high valuations prove to be the favorite targets of hackers as they often boast lesser security systems compared to the likes of ethereum and bitcoin.
Other cryptos such as Verge and Monacoin have faced similar attacks recently. The 51% attack is a favorite of hackers for these smaller cryptos. They don’t require as much computing power to take over a majority of the network and falsify these transactions.
The introduction of manufacturers like Bitmain who produce cheap but powerful mining rigs have also sparked a change in the crypto ecosystem. They created rigs they said could mine Bitcoin Gold very efficiently, leading to some worry in the crypto’s community. Even with this machinery, Bitmain said that it would help prevent attacks like this but has had little success to this point.
Since the hack, Bitcoin Gold has announced it will be creating a hard fork to tweak their algorithm and hopefully prevent future attacks. It is looking to also make mining more challenging so a single system can not control over half of the network at one time. Even with these changes, many other coins will have to follow in suit to protect themselves against these types of attacks.