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

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Bithumb
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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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Altcoins

Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

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collateralized debt position
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While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle.  Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance.  One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess.  That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS.  These projects have managed to find a foothold in the market and have a better chance than most of staying there.  While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.

What is a Cryptocurrency CDP?

In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount.  There are several examples of this in our day to day lives.  Auto title loans from large companies like TitleMax are extremely popular with consumers.  Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has.  The consumer can continue using their car as long as debt payments are made.

The same concept applies to cryptocurrency CDPs.  Consumers are able to put up crypto tokens, such as…

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Altcoins

Hodium Presents a Compelling Opportunity for Outsized Investment Returns

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Hodium
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I’m sure all of us remember the cryptocurrency glory days of 2017 and early 2018.  It was one of the biggest bull runs in history and created incredibly wealth for quite a few early entrants.  Unfortunately, for most of us, those gains have most likely been wiped out during the altcoin apocalypse.  The truth is that traders probably thought a bit too highly of their trading abilities when the reality was that anyone could have thrown a dart at a board and ended up making money.

As markets mature (and the crypto market is definitely maturing) it becomes more and more difficult to generate alpha.  In that regard, it’s similar to traditional financial markets.  I can remember trading during my high school days.  It was the late 90s and right in the middle of the dot.com boom.  Eventually, however, the euphoria fades away and reality hits hard.  Now, it’s become rather difficult to actually trade profitably which has given way to the rise of hedge funds.

Hedge funds are investment funds that pool capital from accredited and/or institutional investors and invest in a variety of assets, often with extremely complex portfolio-construction and risk management techniques.  The professionals employed by hedge funds are the best of the best and have spent years honing their craft.  That is why they’re able to make the millions of dollars that they normally…

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Altcoins

KaratGold Proves Its Business Model By Providing Official Documents

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There has been a lot of renewed enthusiasm in the cryptocurrency market thanks mainly to Bitcoin’s strong move about 10,000.  Although Bitcoin continues to show its dominance, the altcoin market has yet to benefit from that rally.  A few of the largest altcoins remain popular but the rest of the market continues to lag behind.  In 2018, there was a lot of talk regarding a possible altcoin apocalypse where only the strong would survive.  That prediction appears to be playing out as expected.  Going forward, only the best projects that have a real world need will survive.  Crypto traders will have to spend a lot of their time doing proper research in order to find the best opportunities, just like in all financial markets.  One promising project that appears to have the makings of a future winner is KaratGold Coin.

KaratGold Background

KaratGold Coin is a cryptocurrency developed by the reputable German company Karatbars International, which maintains a leading position in the market of small gold items and investments. The project is part of a larger ecosystem, which involves several blockchain solutions that can be used for transactions, communication, investing and other tasks. During the past few weeks, however, the KaratGold ecosystem has been a target of unsavory scam allegations.  

Karatbars International and GSB Gold Standard Banking Corporation…

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