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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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Bitcoin

Stepping off the rollercoaster: Why I’ve fallen out of love with Bitcoin

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The very word Bitcoin has almost become synonymous with that of cryptocurrency. It’s basically just a medium of conducting digital transactions – it’s a virtual currency and one of many. So how has it taken on a definition of its own and asserted itself as a leader in the digital financial ecosystem?

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Altcoins

Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

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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.

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Altcoins

Hodium Presents a Compelling Opportunity for Outsized Investment Returns

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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.

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