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.
Starting this Friday, Walton Chain Foundation pays ERC-20 tokens in exchange for WTC mined by individual miners outside #KirinPool weekly till mainnet token swap.
Announcement: https://t.co/1HYQBycln6 #Waltonchain $WTC #Blockchain #IoT #Cryptocurrency #Mining pic.twitter.com/7pugV2DYwI
— Waltonchain (@Waltonchain) July 2, 2019
It’s worth noting WTC’s mainnet was recently audited by a security firm that claimed everything was alright.