The Verge hacks over the past 45 days have been covered extensively. So much so that it has caused MindGeek to question its long term commitment to the cryptocurrency.
A source at MindGeek spoke with us this morning and described several ‘uncomfortable conversations’ between Verge leadership and MindGeek management.
“The first hack was a concern and a surprise to us. Verge positioned themselves as a privacy token and that is largely what made them attractive. The hack called that into question, but our concerns were set aside after a couple of conversations with Justin and the Verge team.”
”The second hack was a disaster. All sorts of promises were made that this was a ‘one-time phenomenon’ and that it wouldn’t happen again. And then it did. You can imagine the possible brand damage that could cause us serious pain should hackers find their way into our user database via a back foot like Verge.”
”If I could describe where we are at with the partnership right now it would be this: cautious. Very, very cautious. Another hack and we’d be out. Pure and simple.”
This sort of fallout was inevitable once a ‘51%’ attack was levied on $XVG. Any partner would be justifiably concerned and give rise to more questions than we can probably get our heads around.
Verge simply can’t afford to get ‘stopped out’ on this trade. Whether you philosophically agree with the partnership or not, it is worth, potentially, millions upon millions of dollars. So saving the relationship is imperative for Verge’s long term use case and legitimacy.
While the firm is surely working on more partnerships at the moment, they need to dedicate their full resources to mending this relationship. It acts as a gatekeeper to more deals if they can execute as promised.
But if another hack occurs it sounds to us like MindGeek will bail and $XVG could really, really struggle to regain any sort of price momentum.
Based on our MindGeek contact it sounds awfully clear that Verge is on notice and better be working tirelessly to prevent another attack.
Should they fail to prevent another hack it could get really, really ugly for $XVG bag holders.