Author Topic: Mintpal.com Hack & Vericoin Stolen Coins: Rollback Vericoin Blockchian? [Poll]  (Read 865 times)

mouseman

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Disclaimer: I do hold some Vericoins at the time of this reporting.

This is NOT breaking news and is nearly a week old now. Again, this is nothing to be concerned about as it was 100% taken care of and neither Mintpal exchange members nor Vericoin investors lost any coins.

The following poll was used to get some level of insight whether the crypto community and Vericoin investors thought Vericoin Devs' immediate move to rollback the coin's blockchain was appropriate and warranted.

http://strawpoll.me/2108265/r

The community logged 200 "yes" votes (72%) to 78 logged "No" votes (28%) in support of the Vericoin Devs' time warp 1 day rollback of the blockchian. This vote in no way influenced the Vericoin Devs' in their decision and was a simple straw poll that was created AFTER the Devs' had both made the decision to take action and had completed the Blockchian Rollback successfully.

Background:
Just a few days ago the quickly growing Mintpal.com cryptocurrency trading exchange was hacked. Vericoin, and supposedly Litecoin as well as Bitcoin wallets were the target. However, Mintpal has admitted, for various reasons, they had left a high percentage of the member Vericoins in a hot wallet when they should have been in a cold wallet. Kudos for Mintpal for being forthright, however is doesn't change the fact that this was in fact a grave oversight. This oversight so large as to quite possibly shut down the exchange as it has been quoted by the 3 developers that the thief made off with what equated to 8 million Vericoins (equaling 1/3 of all Vericoins in existence).

How nearly 1/3 of all Vericoins ended up on one single exchange is beyond me, but that is not the topic of this thread as much as Mintpal's irresponsibility and the question of whether the Vericoin Devs made the most competent decision in light of what was at stake.

So, what was at stake? "Was" is the pivotal word in that question because although their may be some long term ramifications to the physical blockchain rollback decision of Vericoin in the cryptocurrency industry, the fact is that in the short term this saved not only Vericoin but also the Mintpal.com exchange. Had the Vericoin devs collectively agreed to not rollback the blockchain approximately 24 hours so as to disable the 8 million coins the thief stole from the Mintpal hot wallet:

1. Mintpal would have to have come up with approximatley $2 million to reimburse vericoin coin holders

2. If it did not have the funds to follow through with that, it may very well have had to close the exchange

3. Which of course would have also meant, much like the Mt. Gox saga, those Vericoin exchange holders would have lost most if not all their coins

4. Also, if Vericoin Devs' did not implement the blockchain rollback, and all Mintpal exchange members holding Vericoins were told by Mintpal that their coins would not be reimbursed by the exchange, this decision could have very well created such a negative investor backlash as to render the Vericoin a "semi-dead" coin. 

All of those "possibilities" did not, in the end, happen. Things were returned essentially as if they never happened when the 24 time warp was implemented. Simple as that? Wash our hands clean and move on? Well, maybe.....maybe not. We will see if the Mintpal trading exchange loses not only its strengthening momentum is had been building up against its exchange competitors, but also if Vericoin itself can maintain both its trading price and reputation as a whole.

Again, I will leave it to the Colossus Coin community to decide this essential "saving" of both the Mintpal exchange and the Vericoin investors holding coins on that exchange was or was not the "right" thing to execute in light of all the factors discussed here.

Edit: Also keep in mind, the THIEF himself who stole upwards of $2 million worth of Vericoins, apparently because he did not trade them for BTC fast enough, made off with $0. Got to love that aspect of the story!
« Last Edit: July 19, 2014, 02:54:53 AM by mouseman »