Is Verge Coin a Scam? According to many, yes. But how are things really? And why many people claim that XVG cryptocurrency is a SCAM? If you are thinking of investing in Verge, it is good that you read this article;
What is Verge and how does it work?
Verge is a cryptocurrency with an autonomous decentralized blockchain platform, developed from the original Bitcoin source code. It is considered a coin focused on user privacy. The anonymity of the transactions is guaranteed by the imposition in the source code of multiple connections with the anonymous Tor and I2P networks. The two networks are known for their ability to immerse the user in the deep web. Transaction IPs are clouded and made completely untraceable. Verge, according to its developers, offers fast transactions and low commissions.
Verge coin can be mined, in fact, the cryptocurrency uses the PoW consensus method and various algorithms to ensure network security. The algorithms used for Verge mining are:, LyraNamely, Scrypt, X17, Lyra2rev2, myr-groestl, blake2s.
But now let's move on to the reasons that push many, even among experts, to consider Verge a scam.
A step behind
The surprise announcement of an agreement signed with a well-known web company in the red light industry, which would have allowed its customers to pay for the services offered also with Verge, caused some big FOMO at the end of March 2018. In the same period, the digital currency network suffered a 51% cyber attack showing the platform's vulnerability. Meanwhile, the team is accused of having distracted part of the money from a fundraiser they requested to finance the development of the project. It is not enough, because in May a new attack brings the project to its knees.
Verge's price in the markets
As can be seen from the Verge price chart below, after the mid-April peak due to the announcement of the partnership with the Adult industry company, Verge's price has fallen miserably on values ??that, in light of the facts, we must consider those corresponding to the real value of the project.
It all starts in mid-March
In contrast to the other cryptocurrencies, Verge shows extraordinary increases in value within about 30 days: from the minimum of March 18 to the maximum of April 16.
What pushes the price up. At the end of March the team spread the word about an alleged very important partnership, then the confirmation with an official news according to which Verge will shortly enter into a commercial collaboration with a famous online payment company. The confirmation of the news earns XVG up to 234% in a short time. The marketing strategy to divert attention from other emerging problems works well.
The 51% attack
Everything seems to be going according to plan. Verge's prices go up and investors are happy. But on April 4 there is news of a 51% attack on the Verge network. 250 thousand knots are compromised and only a hard fork manages to restore the situation, but days pass before the patch is applied to the leak. That's not all, the team publishes the news of the attack 51% only after the attacker of the attack - OCMiner - reveals what happened on Reddit.
And the funds?
Despite the serious event that causes 25% of the value to be lost in the markets, the price of the coin re-establishes itself in a short time and the anomalous upward race resumes.
This is the good time thought the Verge team to move a part of the Verge of the previous fundraiser, to a cryptocurrency exchange. One might think that perhaps the displacement of the large quantity of Verge had to end with an exchange, in order to collect the gains from the specifically planned pump and dump operation.
The fact is that some in the community are aware of the move and raise the alarm on Reddit. In fact, it turns out that USD 18 million in value has been moved from the addresses of the wallets indicated as those of the fundraiser. The team tries to justify themselves by saying that in reality that money had to be used to pay Ledger, who should have included Verge in his hardware wallet. The French company LEDGER officially denies the commercial negotiation and the team gets into trouble.
Here comes the crash
But the market appears to be apparently immune to all these harmful events and the price continues to rise. Then comes April 16, the day Verge reveals the important partnership with the online payment company to the world. The time of the announcement (15.00) is approaching and XVG coin reaches the peak of the period.
The team reveals the company name in a live video: the partnership is with Pornhub. Novice investors believe it is good news, they believe that the price will go up again, instead it is exactly where it all ends. After the wait, the news spread, the wolves of trading sell repeatedly, collecting the huge gain of 234% in 30 days. A nice pump and dump well used by those who understand these things; for all the others we recommend watching films dedicated to "the wolves of Wall Street" and their immense ruthlessness.
At this point the phrase 'Verge is a scam' becomes popular on the web and certainly does not find good news that can support the opposite. Because the month of May ends with what appears to many to be the coup de grace to the Verge project.
The final attack
On May 22, 2018, a tweet posted by the Twitter account @Vergecurrency announced that some mining pools are under DDOS attack, that the block generation is delayed. These are clear signs of a second 51% attack on the Verge network.
This time the attack steals 35 million XVG, equivalent to 1.4 million USD from that period. The attack is far worse than the first, in which only 250 thousand XVG were stolen.
OCMiner intervenes once again to expose all the incompetence of the developers. He claims that the flaw was not resolved with the previous hard fork and that the theft this time was conducted simply by using two algorithms to divide the chain and use it to one's advantage.
Trust in the project is thus definitively undermined. Since May, the price of Verge has fallen in the markets to its lowest level on March 18. As if to say, the cycle of the Verge scam has reached its end.
