South Korean Cryptocurrency Exchange Hacked
Bitcoin traders around the world were holding their heads in their hands over the weekend, as the Bitcoin crash dropped the price below $7,000: facing a two-month low. The futile crash occurred after South Korean cryptocurrency exchange site, Coinrail was hacked and lost 30% of the altcoins traded over their platform. The total value of their losses was 40 billion won ($37 million.)
The Korean state police are currently investigating this incident.
Since the start of this year, Bitcoin has now dropped 50%. However, Sunday saw the largest spike of all: with a sudden drop of 10% and over $500 in value in the space of an hour. Other major cryptocurrencies also reported losses.
On Friday the coin was valued at $7,616 and Monday’s low was reported as $6,694. It’s only slightly recovered since.
The Korean state police are currently investigating this incident.
Security and Regulations for Cryptocurrency
It’s worth noting that this isn’t the first crypto hacking attack in South Korea. Another Korean cryptocurrency exchange site, Youbit, lost 20 billion won worth of Bitcoin over the course of 2 attacks in December and April.
All of this leads us to ask the question: do we have strong enough security and regulations in place for cryptocurrency?
In the first quarter of 2018 alone, there were seven global hacks, totaling in total losses of $670 million.
I think it’s fair to say that Bitcoin holders should make sure that they’re taking the necessary precautions to keep their money safe. There also should be tougher regulations for cryptocurrency trading websites.
What the Bitcoin Crash Means for Crypto Traders
Following the crash, many traders are in dismay and worrying about the future of bitcoin. Will the cryptocurrency ever recover? It’s worth bearing in mind that this isn’t the only time that Bitcoin has suffered a crash. Over the past 9 years since its inception, the coin has seen major peaks and drops but has always had a healthy recovery.
Of course, there are people who believe that it’s time for Bitcoin’s bubble to burst. But has that time come so soon? We don’t think so!
For traders, this isn’t a time to panic. This is the time to sit still and hold onto your coins.
Better yet, if you’ve been considering joining the cryptocurrency revolution for a while, now is a great time to buy- but be sensible and don’t buy any more than you’re willing to lose. It might take a while, but we’re confident that there’s only one way that Bitcoin can go after this crash: straight back up again.
