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Altcoins take the most hit as Bithumb gets hacked amid a market meltdown

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It is no surprise that the market has been struggling to stay afloat over the past few months. However, even after what appeared to be a slow but sure recovery recently, news of Bithumb getting hacked pulled back the gains that had been made almost in an instant. The hackers managed to escape with cryptocurrencies worth $30 million from Bithumb (world’s sixth largest cryptocurrency exchange in terms of trading volume).

As a result of the hack, the market lost billions in a span of minutes with Bitcoin leading the meltdown as a 16 percent decline was realized. Although most altcoins were hit the hardest with coins such as IOTA, Dash and Monero shaving more than 3 percent of their initial value, Ethereum remained rather stable changing hands at $520 which is about close enough to where it had been trading the past few days.

The hack that triggered market turmoil

After noticing abnormal access to its servers, Bithumb managed to move a significant amount of Ethereum to its cold wallets in an abrupt move to maximize security and perform a server check on June 16th. The maintenance exceeded its scheduled time after which reports indicated that the hack was orchestrated “on the night of June 19th .”

Although the effects of the Bithumb’s attack seem to have only had a mild effect on the market seeing that the dip is leveling off at the moment, it was nothing in comparison to the flash crash that hit the market only ten days ago. Basically, after mainstream media news reported that CoinRail (a small South Korean based crypto exchange) was getting hacked, the key support levels for Bitcoin were compromised leading to a race to the bottom that saw Bitcoin shed about $300 in an hour.

At the time, reports indicated that the CoinRail’s hack had not only led to a $40 million loss but that it was the main trigger to the “knee jack” sell-off that resulted in a flash crypto crash in the market.

Exchanges still record high trading volumes

News about cyber attacks to cryptocurrency exchanges has almost become ubiquitous in the crypto space at this point. However, taking a closer look at the amount of money lost in the past few days due to cyber attacks, you will notice that it is nothing more than a paltry sum when compared to the regular daily trading volumes of most crypto exchanges. Bithumb, for instance, boasts of daily trading volumes in the range of $300 million, while Binance, an exchange that is barely a year old, boasts of over 1 billion USD in trading volume.

With all deposits and payments on Bithumb being suspended until further notice, Bithumb traders and investors will, unfortunately, have to wait for further updates from the exchange platform. Bithumb has however issued out a statement acknowledging the hack while also guaranteeing to issue out compensations to users on its platform affected by the $30 million hack.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Bitcoin

Investors Beware: Another Large Bitcoin Crash Might Be Coming

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The crypto prices have surged quite high in the last few months. Of course, their progress is nowhere near the one seen in 2017, but they appear to be getting there, one day at the time. However, things might not be as simple as that, and according to recent performance — it is more than possible that a major Bitcoin crash is incoming.

The fact is that cryptos saw a massive amount of growth in a very short period. Bitcoin itself more than doubled its price in only two months. Now, the rally is starting to crash in on itself, and the coin is already about $1,000 lower than last week. If such development does come to pass, a lot of people will experience quite large losses, although experienced investors might find some opportunities, and leverage in order to enhance their holdings’ long-term value.

For example, Bitcoin dominance is expected to crash very quickly, which will work in favor of quite a lot of altcoins. While this does not seem to be the best time to invest in BTC, altcoins are another story, and diversifying a portfolio now might end up being very profitable in days to come.

Bitcoin behavior mirrors the pre-bear market situation

The crash that analysts are predicting right now comes as a direct consequence of all the hype that has been building up in…

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Altcoins

Top 3 Coins to Buy Before They Go Big

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Crypto bulls are back, that much is clear. The long-lasting, harsh crypto winter is gone, and the new era in digital currency sector opens up some rather interesting opportunities. With many more bull runs expected to come in months ahead, a lot of coins are likely to blow up and maybe even hit new all-time highs, although that still remains purely theoretical.

On the other hand, the fact is that numerous coins are seeing prices that were not achieved since early 2018, and the overall momentum remains bullish. With that in mind, even if new records do not come for a very long time — chances are that many of the coins will blow up enough for investors to see some serious gains in months to come. As a result, investing in some of these coins now might be a very profitable decision, for those who have the patience to wait a few months. Here are some of the projects believed to have the greatest potential to go big in the second half of 2019 and beyond.

1. TRON (TRX)

Putting TRON on the list should not really surprise anyone, as the project constantly comes up with new project updates, partnerships, and alike. It also constantly breaks records, as is becoming one of the biggest players in the dApp and smart contract development sector.

In the past few…

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Blogs

Can Crypto Credit Cards Disrupt the Fight Against Financial Crime?

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It is commonly known that the world of finances has the biggest problem with the crime of all existing industries around the world. It has been so throughout history. While the financial world has evolved, so did the criminal activities, and they continue to be an issue. With the arrival of cryptocurrencies, many were hoping that financial crime might be disrupted. However, for now, at least, it appears that cryptos themselves cannot find a way to resolve issues such as international money laundering.

In fact, when it comes to money laundering, the crypto sector appears to be the weakest link, especially because of the nature of digital currencies. The anonymity that cryptos are being praised for means that anyone can get a payment from an unknown source from anywhere in the world. This method can then be used for financing drug trafficking, cyberattacks, terrorists, and more.

Until recently, it was not easy for bad actors to make use of cryptocurrencies obtained for illegal purposes. The number of merchants willing to accept the coins was low, and criminals were forced to find a way to exchange crypto into fiat currencies. However, this came with a set of issues, such as taking foreign exchange risks and then sending the money through wallets and exchanges to a banking system that would allow withdrawal. The banking account was the biggest obstacle here,…

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