$10 Billion was lost form Bithumb and cryptos recover slightly
Does anyone feel that we are reliving the same old story over and over? This time South Korea’s biggest cryptocurrency exchange was hacked, yes hacked and lost more than 10 Billion yesterday 20.6.18.
No problem the cryptocurrency market just added today another $8 Billion to its value.
Bitcoin, Ethereum, Ripple, and Bitcoin Cash fell almost 2% on June 20. Now a minor correction was noted on the charts and that was the result of the hack, but a quick action was taken by the Bithumb which immediately completely stopped the correction rally of the cryptos and the short-term rally of Bitcoin. The correction was about from $6,300 to $6,700.
A statement from the Bithumb team was issued saying "We checked that some of the cryptocurrencies valued about $30,000,000 were stolen. Those stolen cryptocurrencies will be covered from Bithumb and all of the assets are transferring to the cold wallet."
Bithumb made more than $300 million profit in 2017 having said it’s believed that the amount $30 million for the hack recovery will not much affect the company if we take also in consideration that the company valued almost over a billion.
Based on the CCN there is a fact that does not compliment the company and the fact is that after the release of the company statement they removed it from the social media platforms.
The company was asked about that and they said that the company will recover the $30 million with their own funds while regulators asked the company in the future to find a more organized way to deal with this kind of problems.
May indicators and many analysts were shown an optimistic bias regards to the short term trend that the cryptomarket created due to the positive movement of BTC and ETH.
Now regards the recent hacks we can say that cryptos may fell quickly if investors trust is drained because of the constant inability of the exchanges to stop hackers.
A large sell-off may occur and cryptos may end up worthless if the people responsible for the security of the cryptomarket don't invest more in the security.
The infrastructure must be the main priority and not the marketing for the cryptos to function properly.
There is much potential to this technology but we need to advance with caution if we want to succeed.
About the Author:
Marios Athinodorou is TeleTrade’s market analyst and commentator. Apart from being an experienced trader, Marios is an advanced technical analyst and is interested in trading psychology. He has 7 years of trading expertise in Forex and CFDs, providing insights to share with all kinds of traders, from beginners to experts. Among others, Marios is delivering weekly trading webinars. Sign up for upcoming webinars, here.
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