The non-profit organization behind AurumCoin (AU) claims that it was hit by a 51% attack. Because of this, crypto exchange Cryptopia lost 15.752,26 AU, which is valued around 550 thousand dollars. AurumCoin puts all the blame on the exchange, while Cryptopia denies any AU transactions have taken place since the token’s markets were halted early October for ‘an infrastructure upgrade’.
AurumCoin denies any responsibility. During a 51% attack a hacker takes control over a blockchain network by gaining more than 51 percent of the hashing power. This gives the hacker the authority to control transactions, including stopping and reversing transactions as well as double spending coins.
In the past few months the number of 51% attacks seemingly has increased. Recently Bittrex removed Bitcoin Gold after an 51% attack happened. On multiple occasions it has been shown how easy it is to perform such an attack on smaller coins. The less miners there are in a network, the easier it is to setup such an attack.
AU has been on the market for several years. It has a market cap somewhere around 10 million dollars. The hacker sent 15.752,26 AU to Cryptopia and exchanged it for another coin. After that the hacker allegedly used its superior hash power to reverse the transaction, as though it never happened. Basically the hacker made himself another 550 thousand dollars.
Cryptopia is one of the longer running exchanges and known for listing smaller coins. The exchange is 113th biggest on the market. Daily investors trade for 2.5 million dollars, while monthly Cryptopia handles 85 million dollars.
Aurumcoin is an interesting project. Supposedly every coin is backed by actual gold, yet this crypto coin can be mined using the SHA-256 algorithm. On top of that the coin fluctuates a lot in value, which is something that should not be happening. AurumCoin claims that one AU is worth 1 oz of gold. In September this year the coin peaked, reaching a value of over 1700 dollars per coin. Within 24 hours the coin was back at 45 dollars.
Currently the gold price per ounce is $1200.50, while the price per gram is $38.60