Bithumb Hack Lowers Investor Confidence

Bithumb Hack Lowers Investor Confidence

The effects of yesterday’s hack attack on Bithumb; currently the sixth largest exchange by trading volume has not been primarily felt as had been expected. However, this incident has in the Cryptocurrency economy in the country.

The Next Cryptocurrency Exchange To Be Hacked

Many different media outlets, as well as web users, have concluded that the only Cryptocurrency left in the market that is yet to experience or suffer a hack is Upbit, Bithumb’s competition. Though it has been fortunate so far not to experience a hack, Upbit is dealing with issues of its own, the major one being that it is under investigation for alleged financial irregularities.

After the news of Bithumb’s hack going public, and in preparation for an attempted attack on its platform, Upbit has stated that it plans to step up its hacking preparedness procedures. An official has intimated that Upbit will be significantly increasing its response to a hack attack with the ever-increasing hacking threat levels.

Price Fall After The Fact

Initially, prices of most Cryptocurrencies in the South Korean market fell after news of the hack went public. At midday June 20, prices had already started experiencing a fall, and by 6.30 pm they were already stabilizing albeit for Bitcoin and altcoin. The price drop has not been considered to be significant with many speculating that the reason behind it may be because the amount that was stolen wasn’t too large. Also, the assets targeted were not belonging to customers but trading sites.

However, has reported that the trading volumes at Bithumb have dropped from USD 380 million to $219 million after the hack attack.

KTB Solution’s, a Cybersecurity company, CEO Kim Tae-bong has been quoted saying that many exchanges do not employ a strong level of security. He went on to state that many of them are lagging behind concerning security with some having security levels that are not even comparable to that of a small savings bank.

Bitcoin Prices Affected

Bitcoin was yesterday night after news of the hack got out. Even with this hack, however, the charts continue to show Bitcoin normalizing at $7000.

The Cryptocurrency experienced a $180 dip, from $6,740 to $6,560. This was after the announcement of the hack had taken place anywhere between Tuesday and Wednesday. Cryptocurrency worth $31 million was lost during this particular hack.

Bithumb has already stopped all services relating to deposits and withdrawals as a security measure. It has also announced that it will be fully compensating its customers.

Even with this attack, and others experienced in the past highlighting the security flaws in the exchanges and the security risks experienced in the Cryptocurrency space, Bitcoin has continued to weather the storm.

At press time, Bitcoin’s price was at $6,630 at Bitfinex, this is a decline of 1 percent experienced in the last 24 hours. This is a significant price increase when compared to the previously recorded price of $6,560, Asian session low.

June 21, 2018

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Samantha Mitchell

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