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Last week, privacy-focused crypto altcoin GRIN made news after the development team received a donation from an early Bitcoin whale interested in supporting future development of the budding technology built on a unique blockchain protocol called Mimblewimble, after Happy Potter lore.

Now this week, that whale may regret the donation, as a former Google engineer and computer scientist has discovered a new attack that “breaks Mimblewimble’s privacy model” and uncovers as much as 96% of the addresses associated with the privacy altcoin.

Former Google Engineer Publishes Successful Attack on Privacy Altcoin

Russian computer scientist and former Google engineer Ivan Bogatyy, has revealed via a detailed Medium post, that he has discovered an attack vector that allows the developer to expose the exact addresses of the senders and receivers of 96% of all GRIN transactions in “real-time.”

Related Reading | Road To Riches: The Ups and Downs Of Going All-In On Crypto 

The developer claims that GRIN’s protocol, Mimblewimble, is “fundamentally flawed,” and unfixable, even going as far to say that the Mimblewimble-based cryptocurrency “should no longer be considered a viable alternative to Zcash or Monero when it comes to privacy.”

Bogatyy says he was able to use only $60 per week of spend on Amazon Web Services to use the attack to expose the addresses of the privacy coin.

He says that while GRIN “still affords a stronger privacy model than Bitcoin or other non-privacy coins” due to it obfuscating transaction amounts, just not addresses, “Mimblewimble should not be relied upon for robust privacy.”

Bogatyy has published a full technical breakdown of how the attack was successfully implemented and how the developer was able to reveal the addresses of as much as 96% of GRIN transactions.

Turn That GRIN Upside Down: Early Bitcoin Whale Likely Not Happy With Attack

GRIN has already fallen from roughly 12.5% from a local high of $1.60 following last week’s news that an early Bitcoin whale had made a 50 BTC donation to support further development of the privacy altcoin, to as low as $1.40 at the time of this writing.

Related Reading | Early Bitcoin Adopter Supports Privacy Altcoin Grin 

The early Bitcoin whale is likely none-to-thrilled that this attack was revealed only days after making a 50 BTC donation to a project that a Google engineer is now saying may not even be “salvageable” and not at all suitable for privacy transactions – which was much of the altcoin’s use case.

The GRIN team will likely need to rely on that 50 BTC donation in order to try and develop a fix for the attack, or the longevity of the project could be at risk in the face of more private protocols like Monero or Zcash, as the engineer has pointed out in his report.

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Tony Spilotro , 2019-11-18 19:00:44

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.


While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

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Nick Chong , 2019-11-10 12:00:38

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