Tether allows users to trade between different cryptocurrencies as well as deposit Fiat currencies in order to buy the cryptocurrencies. Recently, it was hacked. The company has announced that over $ 31 million were stolen from its treasury wallet. The money was stolen in the form of USDT. This is a token which is marked against the US dollar.
The company further stated that it is in the process of trying to recover the tokens which were hacked. On the release of this news, the cost of Bitcoin came down by a few percentage points before rising back again.
The startup also stated that it is taking steps to ensure that such hacking attempts do not take place in the future. Recently, many of the startups in the cryptocurrency space have been robbed by multiple hacking attempts. This is fast eroding the trust of investors in these cryptocurrencies. It remains to be seen whether these hacking attempts can be reduced.
Currently however, it is the investors who are losing a significant amount of money because of these hacks. Most of the platforms which allow trading of cryptocurrencies also stated that they have a robust security system. However, repeated, successful hacking attempts would actually erode the trust in the cryptocurrencies space and quite possibly with anything related to the blockchain. This is due to the fact that an increasing number of people who have not been active cryptocurrency investors are now also beginning to buy into the cryptocurrency hype.
With the increasing number of hacking attempts, it remains to be seen whether people are still willing to invest with the help of these cryptocurrency platforms or whether this will cause them to stay away from these platforms. If the price movement of Bitcoin is an indicator, there has been no change in the confidence of people who are investing in Bitcoin. However, as of now, there has been no decrease in the number of people who are investing in Bitcoins or any of the other cryptocurrencies.
For the time being, however, it remains to be seen whether Tether is able to recover from this hack and offer normal services once again. Also, would users even trust its platform after this particular hacking attempt? Only time will tell.