The privacy coin “FIRO” previously known as “XZC” is under attack with 51%.
The privacy coin “FIRO”, formerly known as “XZC” has come under a 51% attack.
The project team did not share full details about the attack operation, although they made it clear that they are working with trading platforms and aggregators at the time of writing this article to minimize damage.
The 51% attack, as is known, affects blockchain projects, where the bad and malicious party controls more than 51% of the computing power of the project blockchain, which means controlling the authentication of transactions and the possibility of stealing and converting digital currencies and approving them despite the project management.
Accordingly, the 51% attack against "FIRO" allowed bad actors to take control of it.
According to the project team, who made it clear that the problem and error are not stemming from a coding error but from the nature and mechanism of proof of work.
We are under 51% attack at the moment. We recommend not to make transactions during this time until the network returns to a normal state. We will post updates when we have them. Note this is not a coding error but a nature of PoW. $XZC $FIRO
— Firo (formerly Zcoin) (@firoorg) January 20, 2021
And as we indicated at the beginning of the article, the project team revealed an update that they are working with trading platforms and aggregators to reduce the problem.
In addition, the project team made it clear that shutting down the network would have prevented such an attack, but that the shutdown is currently in a testing state given that it is on beta mode and weeks away from being officially deployed and working.
At the time of writing this article, the price of the “FIRO” digital currency has decreased by 16% and it is still called “XZC” on the Binance platform.