Clearing out the FUD in VergeCurrency

Those last days were rough in the cryptocurrencies sphere, but Verge ($XVG) has been having spiking these last weeks, headed towards the mysterious partnership announcement. This saw its price from 0.029$ to 0.10$ and is hovering around the 0.08$.

A lot of questions are around this cryptocurrency, the mysterious partnership announcement, followed by all the rumors on Reddit, Twitter, YouTube, some say that the partner is great, others who say it’s all a scam, so I wanted to clear things up a bit.

For those who don’t know, Verge Currency (ticker : $XVG) is a coin based on privacy, or better put, a coin which offers the choice of privacy. The project (open source, not a company but a community) was born in 2014 with the name of DogeCoin Dark as a tribute to DogeCoin, and later re-branded as Verge. Verge is an initial fork of bitcoin/peercoin; for non-techies that basically means that the codebase from peercoin has been used to develop Verge, which has a totally different codebase today. Verge today is known for having its wallets based on TOR (The Onion Router), a technology that functions with relay servers that obfuscate your IP address, so that your IP isn’t revealed, and Wraith Protocol. Wraith Protocol is the feature that allows you to use stealth addresses to achieve transactions in an anonymous way. Basically it makes you use one-time addresses to make your transactions. That can be handful i.e. if you want to fund a company without letting people know it.

So, why Verge has a bad reputation?

Verge has been known for having issues with delivery times and communication, which isn’t a real problem: here is the best example: I.e. the release of Wraith Protocol which had been delayed for few days and wasn’t been appreciated by some investors. Since then the team has grown in size and communication improved in quality and timing, regaining the trust of investors.

Another point that seems to bother the investors, is the record from Sunerok, a.k.a. Justin Vendetta or “verge dev” on social networks. For those that don’t know, Sunerok is the founder and the lead developer of Verge Currency. What came out recently is that Sunerok got some minor problems with the justice, but it’s imitated to driving issues, and the last one dates from 2010. This info can be checked by looking at the different archives available online.

The mysterious partnership

Verge has confirmed that a huge partnership with a first-in-his-sector company has been sealed. While Sunerok wanted to announce the partner after the crowdfound that allowed the partnership (next paragraph), a further date has been established to reveal the partnership due to a NDA he signed. (Non-Disclosure Agreement : legal contract between two or more parties that signifies a confidential relationship exists between the parties involved)

The partnership will be announced through a press release (Press Wire), an announcement on the Partner website and on Verge website and medias.

Date has been updated as following :

April, 17h 2018 at 10am EST.

People started then talking about crowdfund to finance the mysterious partnership, the Ledger integration, the global marketing campaign, the iOS Wallet and more, stating that it could be an “exit scam”. This has been almost a trend, especially coming from Verge competitors; in fact there were multiple posts on Reddit, Twitter and Youtube trying to confirm this theory. Now, a few questions come up when reading this : Why? What is the point on doing an exit scam right now? Verge is a 3.5 years old project, and his All Time High (ATH) was on december with the price floating around 0.22$.

Another point that makes me exclude the possibility of an “exit scam” : TokenPay, which is a company with his new HQ in Lucern, Switzerland, with the objective to provide crypto debit cards, invested nearly 66M $XVG out of the 75M $XVG required by the crowdfunding to achieve the partnership (plus, Sunerok is their main auditor). Why would a company put so many money in a coin without a minimum of trust?

People also freaked out when funds has been moved through different wallet addresses. Now, what you have to know, is that those funds aren’t controlled by Verge, but by the partner who manages them at his will. That has been cleared out by Sunerok as by other Verge Core members.

The Ledger Conflict

Another point that has been source of Fear, Uncertainty and Doubt, is the Ledger affair. To summarize that, there has been a misunderstanding between the Verge team and Ledger Team, that claimed that Verge never came to them. It has been cleared out later that there has been a contact months ago and there is a pull request (now closed) in Github that proofs that moves were made.

The official statement today is that nothing has been concluded yet, that Ledger retired the integration fee, letting every coin enter the Ledger ecosystem if integration is provided by the coin community itself and Verge stated that it will concentrate on it after the partnership announcement.

The timestamp exploit (“51%” attack)

This was one of the bigger items in this coordinated fud campaign. To explain the attack that has been experienced in a ELI5 (Explain Like I’m 5) way, basically, a vulnerability with one of the mining algorithms was found and used to trick the blockchain that the computing power was way stronger on a bunch of machines playing with the timestamp. Verge countered the attack in less than 3 hours, fixed the issue and released updated wallets and fixes in the following 72 hours, establishing a record in this kind of attack that other well-known cryptocurrencies suffered from, like Ethereum, Litecoin, Bitcoin, Monero, and several others.

If you want to know the details, you can read the article written by Kris Chase linked below :

Other FUD Sources

There have been several other FUD campaign emerging from smaller various, like the video posted by former professional poker player Douglas Polk, or by Monero Main Developper FluffyPony.

Sunerok did more or less respond to those attacks, but most importantly, he stated that the problem isn’t only with Verge, it’s cryptowide, as quoted below :

Just imagine some random coin in the top 20, and you are the CEO of a huge multi billion dollar company and you are thinking about integrating a coin. You search Reddit and Twitter to read about that coin, and all you find is toxic and cancerous posts. You close the browser and decide — Nah, this is mostly 17 years old kids and toxic as hell, fuck crypto — It’s not just Verge, every coins’ Twitter and Reddit is filled with toxic posts.

Ending line

The main objective of this article is not to advertise Verge or to put down other projects, but to try to clear up a little FUD in the big world of cryptocurrencies. The crypto world is still young and people should help each other instead of fighting, to help a sane growth and a good education towards the revolution coming up next years.

Never forget to Do Your Own Research before investing in anything, that it should not being invested more that it can be afforded, and this is definitely not financial advice.

Story reviewed and corrected by @XVGNinja

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Vergecurrency core member, focused on development.

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Manuel Cabras

Manuel Cabras

Vergecurrency core member, focused on development.

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