Posted on November 7, 2017 at 11:51 AM
British Cryptocurrency Startup Hit By DDoS Attack
One of the UK’s most prominent blockchain-related startups recently suffered a crippling DDoS attack.
The UK-based blockchain startup, Electroneum recently fell victim to a severe DDoS attack which forcibly shut down the startup’s website for days. Electroneum made headlines previously when they raised over $40 million during their initial coin offering (ICO) sale.
The startup offers users a cryptocurrency that they can comfortably mine using their smartphone devices. Electroneum’s mobile app, which enables the mining function, was scheduled to launch last Thursday after they’ve raked in millions in both Bitcoin and Ether during their ICO.
However, following a severe distributed denial of service (DDoS) attack just last week, the firm was forced to postpone the launch of their mobile app.
DDoS attack campaigns consist of an intricate system of exploited computers, which is collectively known as a botnet. The botnet then managed to flood any given website’s servers which prevent any legitimate traffic from gaining access to the compromised site. This, in turn, renders the affected website vulnerable to additional attacks.
To address this attack, the developers from Electroneum has shut down all their accounts while they rectify the issues, and presumably implement stricter DDoS protection, in order to bring their website back online in a safer fashion. According to the startup, over 140 000 individuals currently as in possession of their tokens.
The Electroneum cryptocurrency was readily bought up, as most users have been eagerly investing in all cryptocurrencies hoping it will become the next Bitcoin. Understandably so, as Bitcoin has officially reached prices of over $7000.
When one small step…becomes one giant leap #Electroneum #Cryptocurrency #Launching #Blockchain pic.twitter.com/Zo1nI0UhP7
— electroneum (@electroneum) October 31, 2017
Electroneum however, somewhat more hype than the average cryptocurrency, especially after the football manager, Harry Redknapp, gave Electroneum his personal endorsement.
According to the startup, they will enable the average individual to mine cryptocurrency profitably, but without needing the expensive hardware and processing power required by cryptocurrencies such as Bitcoin or Ether.
However, several users vented their frustration regarding the DDoS attacks via social media. Many have criticised the startup for not implementing enough DDoS protections as well as not testing their product before launching.
Sunday 18.41 Coding as fast as we can. Working to get this live all weekend. Thanks for patience, Hope for good news this evening! pic.twitter.com/wuZQZGoHUJ
— electroneum (@electroneum) November 5, 2017
Since the DDoS attack, the startup released a statement via their website which apologized for the delay. In addition, they acknowledged their users’ frustration and stated that they are addressing the issue as quickly as possible.
Ironically, this attack followed shortly after the Financial Conduct Authority (FCA) warned prospective investors that there is little to no protective measures in place for investors when they put their money towards ICOs. The FCA continued to state that ICO investors should be prepared to lose their entire investment.
In addition, emerging cryptocurrencies and ICO have increasingly been targeted by hackers. Earlier this year, another ICO lost over $7 million of investors’ money after they were hacked shortly after launching.
Despite the increase of attacks, investors themselves don’t seem discouraged, especially not with the continued rise in the Bitcoin price. However, the latest craze has led several financial leaders to question whether cryptocurrency is perhaps the world’s next bubble.
Most ICOs manage to rake in millions within hours of launching their ICOs. However, most cryptocurrencies lose value soon after, as users cash in their tokens soon after a product switch from ICO to cryptocurrency.
Electroneum’s chief executive, Richard Ells, has yet to comment on the attack.