$42 Billion Gone In A Matter Of Hours…
Cyber thieves are at it again.
The latest victim?
Alt-coin holders on South Korea’s Coinrail exchange.
According to CNNMoney, hackers stole roughly 30% of all the crypto held on the exchange over the weekend.
The estimated dollar figure of the theft is roughly $40 million, as reported by CoinDesk.
Coinrail suspended trading in light of the news, and in a statement to the press said it was fully cooperating with investigators to try to track down the missing funds.
Great, but as for as we can tell, there’s no way to recoup these losses.
Meaning investigate all you want, the damage is already done.
After all it’s not like these exchanges are FDIC insured. And the anonymous nature of blockchain isn’t going to make tracking down the bad actors any easier.
$42 Billion Gone In Hours
It light of the news, Bitcoin’s price has fallen 11%. Folks clearly have had enough and are abandoning ship in fear that they might be the next victim.
Other tokens saw similar mass sell-offs over the weekend, creating even more losses for the space.
Of the top 100 tokens by market cap, only 3 are in the green this morning as I write.
In total, approximately $42 billion of the entire crypto market cap was lost during the weekend sell-off, as reported by Gizmodo.
For all the promise cryptos and their underlying technology (i.e. blockchain) have, the space can’t shake its biggest problem… A lack of security.
Would you deposit hard-earned dollars in a bank that always gets robbed?
Of course you wouldn’t. And we don’t blame folks for dumping their crypto holdings.
The Crypto Bears Are Winning
The Coinrail attack is only one of many recent attacks on crypto exchanges.
And the weekend’s sell-off indicates folks truly believe their money and/or crypto isn’t safe anywhere.
This could lead to more sell-offs, and a total collapse of the crypto market.
Of course blind bulls will argue otherwise.
John McAfee took to Twitter stating: “Do not panic about the drop in Bitcoin’s price. It is an overreaction to the news that Bitstamp, Coinbase, itBit, and Kraken are being investigated for price manipulation. This will delay the bull market by no more than 30 days. Don’t buy into the fear. Buy the coins.
Funny how McAfee doesn’t mention the hacking problem. But he is right about one thing.
Governments are actively investigating many exchanges.
According to The Wall Street Journal last week, the U.S. government has “demanded that several bitcoin exchanges hand over comprehensive trading data to assist a probe into whether manipulation is distorting prices in markets linked to the cryptocurrency.”
This is one of many investigations happening right now here and abroad.
Add to that the uncertainty brought about by hackers stealing crypto like it’s the Wild, Wild West and we can’t see how there are any crypto bulls left.
Long story short, there’s too many issues for folks to combat in crypto right now.
There’s too many bad actors spoiling the party, and until this changes you’re better off holding tight in my opinion.