After the bitcoin’s price dropped to 7 percent yesterday i.e., on 11th June 2018 after the South Korean Cryptocurrency exchange known as Coinrail revealed that hackers have nearly stolen a third of Bitcoin. This incident has again shaken the investor’s confidence. The U.S. regulators have started investigating into cryptocurrency market manipulation. Coinrail has suspended all-digital currency trading on its platform after this incident.
The anonymity of cryptocurrency trading in most parts of the world makes it an attractive tool for criminals. A recent report from the University of Sydney and the University of Technology, Sydney shows that 25% of bitcoin users and 44% of bitcoin transactions are related to criminal activities.
The South Korean Cryptocurrency trading center, Coinrail in one of the world’s largest Cryptocurrency exchange centers has faced the ultimate turmoil in the yesterday’s incident. If you’re one of these people who has invested a great deal of money in Cryptocurrency especially Bitcoin then you have my sympathies. In the given two days, The value of bitcoin has dropped to an alarming rate of 10 percent. Ethereum, ripple, and bitcoin cash has fallen more than 11 percent and sadly EOS has dropped to 20 percent.
Yes, this is a sad news for every single Cryptocurrency lover. The major hack hit on Coinrail is the reason why there is a fall in the price of Cryptocurrency. The person behind the hack stole about $40 million USD, as mentioned by The Wall Street Journal.
The Coinrail is currently offline now. Coinrail has stated that 70 percent of all the cryptocurrency tokens are now secured, stored and are inaccessible in a cold wallet. The Cold wallet is a cryptocurrency wallet which is safely disconnected from the internet. The Korean police are investigating the hack and they have already recovered and have frozen the 80 percent of the money stolen in the hack.
Hacking has been a major and a consistent problem for cryptocurrency exchanges even if the purported security of Bitcoin itself. Earlier this year, after the hacking of the Japanese exchange Coincheck, digital currencies worth more than US$500 million were used. Communicating with compatriots in Japan. In 2014, Gox filed for bankruptcy after losing $500 million worth of Bitcoin. At the highest point, the exchange processed more than 80% of the world’s cryptocurrency transactions. Coinrail is the 98th largest cryptocurrency exchange.
The hack has created a chilling effect on prices of other cryptocurrencies as well. It’s not very big of a deal than $40 million is nothing to sneeze at, the truth is the hack didn’t even impact bitcoin. Still, the investors have jumped ship and this led to the decline of bitcoin’s price and the value of each bitcoin dropped very fast. This led the other cryptocurrencies to get plummeted this weekend.
This attack seems to have surprised investors over others. Maybe they are even more embarrassed and more inclined to cover up their bases so that they will not suffer future cyber attacks. Since it is not yet clear what will affect everything else in such an unpredictable and illogical unregulated space, investors will look at all signs of the entire space to show what will happen to their own investment. Even if it is in a different cryptocurrency.
And for those people who believe that they should have their own digital currency as a store of value as a last resort. This is quite true. When you’re dealing with digital currencies you have to protect your investments as well as your assets.