How did the market react to the hacking of Bithumb and why did Ripple start to lose partners? We deal with the situation in our daily heading.
Today the crypto-currency market has been «shook up» by the news about the next hacking of the exchange. South Korea is again at the sight of the hackers but this time they decided not to be content with a supernumerary exchange such as Coinrail whose hacking launched the last wave of the recession but to «fix the result» aiming at one of the largest exchanges in the country − Bithumb, from which more than $30 million was stolen. The exchange announced its intention to compensate the users for all the losses but the temporary freezing of deposits and withdrawals of funds on Bithumb hit hard at the rate of bitcoin and other coins also collapsed after it. In this context the capitalization of the cryptomarket has decreased by $9 billion and now most of the tokens are in the «red zone».
Bitcoin (BTC) is losing about 1.7% and the fall by $150 was sharp and coincided with the publication of a message from South Korea.
The analysts believe that bitcoin has not yet reached its «bottom» and now there is a process of finding the minimum. The head of Blue Line Futures Company Bill Baruch holds such point of view and believes that bitcoin will drop to $6 000 but is unlikely to be lower.
«The minimum is a process but not a price. Now, when the price and volatility of bitcoin have descended to the ground, the process of finding the minimum may begin», − he believes.
Baruch expressed confidence that bitcoin will resume the growth in the long term and it needs to consolidate above $8 500 and then cross an important psychological barrier of $10 000 for it. The analyst calls the point of the final turn to a long growth the price of $11 300.
Ethereum (ETH) that traditionally duplicates the dynamics of the leading cryptocurrency is falling by 2.1%. Even the news about the use of ETH tokens in the Kiip application through which the German brewing giant Anheuser-Busch InBev launched its advertising campaign did not stop the reduction. The growth potential of this coin now is limited by $530 mark but the sellers continue to struggle to regain the control over the market.
Ripple (XRP) is losing 3.6%. In addition to the general painful reaction to the hacking of Bithumb, the message from the CEO of Western Union Hewlett Ercek about the refusing to cooperate with Ripple Company exacerbated the fall. According to him, the use of the xRapid platform and XRP cryptocurrency for half a year did not help to reduce the costs. It's too early to judge the effectiveness of the platform and Ripple notes that WU considers its costs on an outdated method but this news has dealt a serious blow to the company's image.WU was one of the first major translation systems that launched the Ripple technology testing.
Worst of all in the first ten are IOTA (MIOTA) that has lost 7.15% despite the listing on the BitPanda exchange and Cardano (ADA) that has reduced the rate by 5%. But it is worth noting that Cardano cryptocurrency is in the stage of the radical rebranding. The experts predict that as a result the rate of the cryptocurrency may jump already in the coming months and in the perspective of one and a half years the current rate of $0.15 may grow to $10. It seems tempting but this plan is implemented only if ADA maintains its reputation for a stable and reliable cryptocurrency and also determines with the plans for further updates in the very near future. It is known that the team plans to add the support for Bitcoin and Ethereum Classic, develop a mobile application of the wallet and enter into a partnership with the South Korean mobile company Metaps Plus.
The leader of the growth today is Huobi Token (HT). It has added more than 10% in the context of the news about the launch of the Australian branch of the Huobi Pro cryptoexchange and the support by the main trading platform ZCash. Good results were shown by the medical Docademic (MTC) token that was supported by John McAfee and has grown by 7% and Bibox Token (BIX) that has risen by 5.7%.
As we see on the charts, the tokens have reacted to the message about the hack-in almost synchronously sharply sifting by 1-5%. The issue of cyber-security continues to be one of the main risk factors that affect the entire cryptocurrency infrastructure. The strengthening of security measures on all exchange platforms and ensuring the transparency in the field of tax deductions requires considerable costs from the operators of the recently almost «wild» market but now it is the only possible way to whitewash the cryptocurrencies sphere and attract an attention not only by regulators and hackers but large investors.
Get exclusive access content and events