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Bitcoin Price Drop after South Korean Exchange Hack

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On 10th June 2018, CoinRail, a small yet renowned cryptocurrency exchange in South Korea had announced that there had been a hacking attempt. The official website of Coinrail stated that they had confirmed “70% of the coin rail total coin / token reserves are safely stored” and, “Two-thirds of the coins confirmed to have been leaked are covered by freezing / recalling through consultation with each coach and related exchanges. The remaining one-third of coins are being investigated with investigators, relevant exchanges, and coin developers.”

Currently, CoinRail is focused on improving the security so as to provide the maximum protection to the assets and minimize the damage. The exact damage of the leaked coin and tokens is yet to be confirmed and may take some time. The Bitcoin price and many other cryptocurrencies have dropped after the news of the South Korean exchange hack was released. Meanwhile, an investigation by police agencies is on the roll.

Drop in Price

It has been noted that the price of Bitcoin had dropped by nearly 11% after 5 p.m. New York time on Friday. At the time of writing on 11th June, the price of BTC as per coinmarketcap.com shows $6,782.39 USD (-7.11%) approximately. This has resulted in its year-to-date loss to nearly 53 percent. Other major cryptocurrency markets have also been affected adversely. As per coinmarketcap.com, the market value of digital assets has slumped to a nearly two-month low of $294 billion. Compared to the stats in early January, at one point the digital assets were worth $830 billion.

Ethereum, Ripple, Bitcoin Cash and other cryptocurrencies had fallen by 5% or more. The previous two weeks had seen comparatively little volatility in the cryptocurrency market.

Ethereum has experienced a drop of nearly 6.38% to $534.72 USD as recorded at the time of writing on 11th June 2018. As per coinmarketcap.com, the market cap of Ethereum (ETH) has fallen by nearly $1,000,000,000 USD since yesterday. At the time of writing, Ripple (XRP) has also dropped to $0.582 USD (-7.39%) approximately. The historical data of XRP from coinmarketcap.com shows that there has been a decline of nearly $3,000,000,000 USD in market cap from 8th June to 11th June (as of now). Currently, the market cap of Ripple (XRP) is approximately $22,874,489,464 USD.

Among Ethereum, Ripple and Bitcoin Cash, it seems that Bitcoin Cash (BCH) was more affected. Since yesterday, as per coinmarketcap.com, the price of BCH has fallen to $928.42 USD (-10.04%) approximately. (At the time of writing, 11th June 2018) The market cap drop, however, remains close to that of Ethereum (ETH).

Probable Reasons for the Hack

North Korea still stands to be one of the primary suspects whenever there is news about a cryptocurrency exchange hack. Through this process, it is widely believed that North Korea exchanges the virtual currencies for hard currencies. The turf between North Korea and South Korea is also one of the reasons for cryptocurrency exchanges in South Korea being a target. However, other factors can also be the reason behind this hack.

Hope

The news of another South Korean cryptocurrency exchange hack is quite alarming but it is nothing to be overly worried about. News of cryptocurrency exchange hacks had made headlines previously also. For instance, in July last year, Bithumb, the world’s fifth largest crypto exchange at that time, located in South Korea was hacked. According to reports, information on above 30,000 customers was compromised. Even though the hackers could not access the customer accounts, their personal information was compromised. Another instance of a South Korean cryptocurrency exchange hack is the Youbit hack in December 2017. It was estimated that nearly 4,000 Bitcoins were stolen.

It has been observed that major cryptocurrencies including Bitcoin, Ethereum, Ripple and Bitcoin Cash had rebounded after the hacks. The second half of 2017 had also seen Bitcoin, Ethereum, and other major cryptocurrencies reach their peak. Ripple, for instance, has continued to maintain its status and position in the cryptocurrency world by becoming partners with some of the major financial institutions and companies. The popularity of the Ethereum blockchain and smart contracts has in no way decreased after the news of previous major hacks. It can be said from this that the crypto coins will also again see an increase in price, market cap, and volume. The exchanges have also bounced back with stronger security system and strategies that will protect their clients’ personal information and accounts in case of an attack. The attack on CoinRail will hopefully not have any long-lasting effect on Bitcoin and other major cryptocurrencies like Ethereum, Ripple, Litecoin or Bitcoin Cash.

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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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3 Reasons Why WISE Token Could Be a Massive Winner in 2021

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After working in proprietary trading for over a decade, I decided to transition to crypto in early 2017.  Although crypto is significantly different from traditional capital markets, I managed to successfully find a niche for successful and opportunistic trading.  While 2017 was the perfect time to get involved, the past few years have proven to be a bit more challenging as far as generating ROI.

Cryptocurrency traders have spent the past several years searching far and wide for the next big winner.  While the market as a whole hasn’t been very bull friendly, one specific area that appears to be gaining traction is decentralized finance, more commonly known as DeFi.  This area generally refers to the digital assets and financial smart contracts, protocols, and decentralized applications (DApps) built on Ethereum.  The reason why so many crypto entrepreneurs are flocking to this space is that it allows them to create traditional financial vehicles in a decentralized network, outside the meddlesome control of foreign governments.

One extremely popular DeFi project is Chainlink (LINK) which is a decentralized oracle network that provides real-world data to smart contracts on the blockchain.  Chainlink has seen its token price increase by more than 300% year-to-date.    Another impressive project in the space is Kyber Network (KNC) which has seen its token soar from $0.20 at the start of the year to more than $1.60 at present.  Kyber Network’s on-chain liquidity protocol allows decentralized tokens swaps to be…

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Have you noticed that paper money is on its way to being obsolete because so many people receive direct deposit and love the simplicity of their debit card? 

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BTC Surged Again as A Safe Haven Asset During Global Tensions

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