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Verge (XVG) The Good, The Bad & The Ugly.. Awaiting April 17th

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The Good

Speculation is high as the Verge (XVG) community awaits the announcement on the long awaited partnership. The cryptocurrency has had a price surge since this news hit the market; so far the coin’s price has increased by 180% in the last month. We can agree that that is quite an impressive figure for an altcoin that is currently placed 21st in market capitalization.

It started with a crowdfunding in March 2018 that had been organized by Verge (XVG) in which they had a target of 75 million Verge coins. Surprisingly investors’ were keen on this project and the target has since been surpassed, this has been a good trajectory for the XVG long term growth. As a result the Verge (XVG) team promised to announce a significant partnership on April 17thkeeping its holders in a high mood of speculation.

A couple of crypto experts and analysts believe that this coin has been successful in beating the bearish odds in the current crypto market. Therefore there is reason to believe the Verge will be a fundamental crypto in the age of digital currencies given the good momentum at the moment. Many crypto enthusiasts are hopeful that once price correction and scam projects are eliminated, Verge (XVG) will be among the altcoins trading at the above $1 mark comfortably.

Recent news on the XVG coin has pointed to TokenPay as the mystery partner to be soon announced. This would be the most probable guess for anyone who has been following the two projects closely; On April 8th TokenPay tweeted on the update of a meeting held in Munich;

“#TokenPay CEO @derekcapo meeting in Munich earlier today for breakfast with key stakeholders of the German bank. A deal in principle has been agreed upon by all parties. We will provide full details at closing, but can say that $TPAY and $XVG debit cards are likely coming soon.”

It is such speculations that have seen the value of the XVG coin increase recently with investors’ hopeful that fortunes will be changing soon if they jump in. However, we might have to wait until April 17th to know this mysterious partner following a recent tweet from Derek Capo, TokenPay CEO;

“There is a lot of speculation that @tokenpay is the mystery partner for @vergecurrency the answer is no. However, we do have a lot of plans to integrate $XVG into a lot of services we plan to offer soon. The crypto community needs more partnerships to increase adoption of crypto.”

Verge (XVG) Current Market Performance

The XVG coin is among the most convenient cryptocurrencies for users who value privacy and anonymity based on its protocol. This has been a big factor on the coin’s algorithmic score in which the coin is ranked 10th position while the total supply of XVG coins is at 14,877,632,068 as of press date. Volatility is a common risk factor for this altcoin that has been at 62% volatility within the last month although most of this has been on the upward price trajectory.

New Listings for Verge

Continuing its impressive run, as we await the big announcement, Verge has managed to secure another exchange listing. NakamotoX is a new exchange platform, with a 3-layer wallet system powered by TREZOR for security. Verge and 7 other assets were listed on NakamotoX during its Beta launch.

Following the NakamotoX launch, an announcement by EXVO a couple of hours ago shows Verge (XVG) is now open to trade on the platform. EXVO is a new, state of the art exchange platform, with a decentralized and open source network. The XVG/BTC trading pair is available for trade on the new exchange platform.

Verge has kept things interesting in the last couple of days, and has enjoyed an unwavering support from the faithful verge community. With the current market state, if Verge gets it right with the new partner, this could be a positive for the cryptocurrency.

Positives of Verge (XVG)

Having been improved and integrated with the Wraith Protocol technology, verge users are now able to effortlessly switch between private and public ledgers on the Verge blockchain. Before this, private and public ledgers were mutually selected, meaning that they could not co-exist on a very similar blockchain. But investors are today free to use whatever ledger they want.

A good example was when Wraith Protocol switched ON – one will not be able to view the transaction data, not even via the blockchain explorer. In instances where lucidity is desirable, Wraith Protocol will be switched OFF automatically – revealing the transaction data on the public ledger.

Additionally, Verge makes obscure the IP addresses in both instances. When coupled with Wraith Protocol Verge certainly becomes the only undetectable cryptocurrency.

Lastly, Verges offers five different Proof-of-Work algorithms for mining. They include; Lyra2rev2, Scrypt, X17, blake2s and myr-groestl. Offering a choice of five different algorithms promotes inclusion, since a wider variety of users will now have an opportunity to not only mine but influence the network. Should one algorithm demand greater mining resources, users get an option of just switching to a different one.

The announcement will be made on April 17, 10:00 EST.

This will also be an opportunity for Verge to finally make good on an announcement. The technology behind Verge is impressive, however the team has a poor track record when it comes to deadlines and announcements. See Verge Wraith Protocol Missed Deadline.. Fail or FUD?

See: Verge’s Lead Dev Clears Up FUD In Exclusive Interview

An announcement delivered on time and up to expectations would go a long way in improving confidence in the team.

The Bad

Privacy-focused cryptocurrency Verge is a divisive topic within the cryptocurrency community. While staunch Verge supporters are quick to decry “FUD” at any and all negative news regarding their favored coin, an increasing amount of evidence that the project may be a large-scale exit scam is manifesting — notably, the disappearance of over 18 million XVG from the Verge “fundraising” wallet.

While Verge proponents have vehemently defended the token over recent months — in spite of a bizarre fundraising request and unsubstantiated partnership announcements — the increasingly erratic actions of the Verge development team are becoming impossible to ignore.

Related Story: On the Verge of Controversy

The latest development in the ongoing Verge circus is the most concerning to date. Verge recently announced a fundraising project, asking supporters to “donate to support development,” hinting toward a partnership that “represents an enormous potential market with a global reach.”

The fundraising effort has, to date, yielded 76.2 million XVG, or a little over $6.4 million USD.

While Verge hasn’t provided any specific information on how this capital is to be used, the disappearance of over 18 million XVG from the fundraising wallet on the 13th of April has become a serious source of concern in the cryptocurrency community.

As evidenced by publicly available information, 18,600,021 XVG were moved from the fundraising wallet to a Binance exchange wallet on Friday — assumably for immediate liquidation.

Verge Team’s Inconsistent Statements Don’t Add Up

Verge dev statements on Telegram

The transfer of tokens was met with immediate derision from the cryptocurrency community at large. While the movement of tokens to an exchange wallet is, in itself, cause for immediate alarm, subsequent statements from Verge CEO Justin “Sunerok” Valo have thrown gasoline onto a FUD fire that threatens to burn the entire project to the ground.

The Verge dev team took to the Verge telegram group shortly after the transfer to inform supporters that the XVG was moved to pay Ledger — presumably for Ledger wallet integration. While this may sound reasonable, there are many elements of this explanation that don’t add up.

The official Verge Twitter account was also quick to address community concerns, stating that the tokens were being moved to “partnership wallets, where they belong”, requesting that the VergeFam “stop panicking.”

This explanation in itself doesn’t make much sense — it’s unclear why “partner wallets” would consist of one single Binance wallet address — but replies from Ledger representatives shed light on the rapidly deteriorating situation.

Ledger CTO, Nicolas Bacca, in reply to community comments in a Reddit thread, stated that the Ledger team is not currently working on Verge integration:

“I’m not aware of anybody on our team working on XVG. Maybe some third party is working on it, but I’m not aware of that either.”

Screenshot 2018-04-15 20.30.41.pngBacca’s statements are reinforced by Ledger VP of operations David Balland, who announced on Twitter that Ledger is “not working on any Verge integration.” Fred de Villamil, the Vice President of Engineering at Ledger, clarified the organization’s position on the supposed Verge partnership or integration on Twitter:

Verge’s justification for the transfer of XVG from the fundraising wallet to Binance, based on the above information, is clearly untenable. As if outright denial from the Ledger team of any XVG integration is not damning enough, however, further statements from the Verge development team are inconsisent.

A community screenshot of Verge dev team statements

In response to concrete evidence, the Verge dev team advised Telegram group members that they “started a conversation with Ledger” and “got pricing for integration,” planning on “picking the conversation back up next week once (they) had funds.”

Sounds reasonable? Not according to de Villamil, who has stated explicitly that Ledger does not charge for integration:

“Ledger does not charge for coin integration anymore. Either the integration is provided by the community, which we help for free,  or we follow our own integration roadmap. Have a nice day.”

Further inconsistencies include statements from Verge core marketing team member PhanTi, who announced via Twitter that Verge has not yet talked to Ledger:

Screenshot 2018-04-15 20.32.48.png

At this stage, it’s clear that the XVG transferred to Binance are not intended to be delivered to the Ledger team — who don’t want them anyway. Verge proponents are struggling to defend the actions of the Verge dev team, who have presented inconsistent reasoning for the transaction.

The Ugly

hacker verge-1.jpgThere are many ways to determine the likelihood of a Verge scam. The same rules that can be applied to the assessment of an initial coin offering can be applied to Verge — the most important factor to consider when determining whether a blockchain project is fraudulent or not is the team behind it.

The history of the team behind Verge — specifically Verge founder and CEO Justin “Sunerok” Valo — is colorful indeed. Valo may currently operate as the leader of the Verge team, but his less recent history provides interesting insight into the credibility of the project as a whole.

The Verge Medium blog team post describes “Sunerok” as possessing “20+ years in network security” and “6+ years in blockchain.” However publicly available conviction and arrest information, however, shows that from 2003 to 2010, Verge founder Justin “Sunerok” Valo was arrested several times.

In his defense (simply because we hate people being branded criminals for possessing drugs like marijuana or mushrooms) he was arrested for possession of mushrooms and the charges were dropped. He also received probation for driving with a suspended license. He may be a criminal in the eyes of the law but these crimes are petty bullshit and offer no reason not to trust a person.

Reddit User Crypt0C0iner eloquently states “Verge is a scam and this guy is ripping people off but his past crimes aren’t a big deal.”

See: Verge (XVG) hack casts doubt over development team

See: Verge owners are now selling the XVG raised for their “Partner”

Verdict

XVG’s platform appeals to many, but vulnerabilities need fixing

After the 17th, focus will turn to what Verge and the mysterious partner can do to bolster the platform. At the moment, the success of this community-driven crypto project owes much to the focus of the team, led by lead developer Sunerok. It should also be noted that Verge didn’t raise as much money as many coins that are yet to roll out a working product.

To its credit, Verge already has a working product and shows the promise of delivering. Their Wraith protocol does provide a solid technological base for venturing further into the privacy field of blockchain. The opt-out feature that allows choosing between a private blockchain and a public one stands out.

The excitement, therefore, isn’t borne of mere expectation, but a belief that a partner of a certain pedigree could elevate the project to even greater limits.  The Verge team desperately needs a head of marketing. Poor communication, missed deadlines,

Stability going forward should be the driving force behind the deal, as Verge has suffered the ignominy of being attacked twice. The recent exploitation of a flaw in its mining protocol, led to an accidental fork while fixing it. Such events shouldn’t reoccur as the damage they effect to investor confidence may not be easy to recover from.

We have covered the positive, the negative and the questionable. There is no doubt the technology is impressive.. but inconsistencies, missed deadlines, poor communication, a desperate need for a marketing team combined with a last minute cash raise for an unconfirmed reason ahead of tax deadline dates leave plenty of room for concern. The Negatives simply outweigh the positives for us. Can this mystery partner help them channel the impressive technology and product down the road to success?

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