- An unidentified mining pool assumed more than 51% control over Grin protocol, reorganizing one block.
- Grin is on the verge of a breakout to $0.5 after ignoring the attack.
Grin network suffered a 51% attack on November 8 when an unknown mining group took over half of the protocol’s mining power. The token is privacy-oriented like Zcash and Monero and executes on the Mimblewimble protocol.
A renowned mining pool, 2Miners, made public the attack on Grin via Twitter. The attack saw the unknown mining group assume at least 57.4% of the network’s total hash power. At the time, 2Miners was controlling about 19.1% of Grin’s hash power. On the other hand, sparkpool held onto 18.9% of the hash power.
Blockchain data by GrinScan shows that the attackers are consistently increasing their control over the network. For instance, a forked block at 23:17 UTC on November 7 had been reorganized. Meanwhile, 2Miners’ hash power increased to 24%, while sparkpool’s tanked to 11%.
A 51% attack on a blockchain network is risky and dangerous because it usually leads to extreme price volatility as investors rush to sell. Additionally, confidence in the network erodes significantly. It is worth noting that a mining group can assume 51% control a network and not have a sinister agenda.
Grin fights for a breakout
The privacy token ignored the attack, with the price remaining relatively unchanged. The stability could be interpreted as a sign of maturity, or investors are not bothered by the protocol.
At the time of writing, Grin is doddering at $0.39, as it battles the seller congestion at the 200 Simple Moving Average in the daily timeframe. A break above this level might jumpstart the uptrend to highs past $0.5. It is worth mentioning that Grin recovered significantly from last week’s flash drop that took the token almost at a near-zero value.
The tug of war between the bulls and the bears might continue in the near term. On the other hand, a gradual uptrend observed from the Relative Strength Index (RSI) hints at a potential breakout.
GRIN/USD 4-hour chart
It is worth mentioning that the bullish narrative will be invalidated if the price fails to close above the 200 SMA. Selling pressure is likely to increase below $0.4 and lead to a significant breakdown. On the downside, the 100 SMA will function as short-term support, but if losses proceed under the 50 SMA, Grin may well be in grave danger of a massive selloff towards $0.2.
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